When a loan is paid off early it can change the effective interest cost of the loan because any upfront expenses are effectively spread over a shorter time span, causing them to equate to a interest charge increment. So the earlier the prepayment, the the resulting effective interest cost.

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credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.