How old are your cards?
My score went up the first time my auto loan reported.
It will help your score in time, just get it paid down as fast as you can.
@Nettieinva wrote:
Thanks Distink. They are a couple months old. I have a longer history some with really good lines and others not as good. I have seen a bump in getting the cards and paying down others that were closed. Why pay down the balance as fast as I can? DTI?
It creates equity in the vehicle and reduces your interest charges.
@Nettieinva wrote:
Oh ok yeah that. Lol! I thought t was something in regards to the credit score.
Making saving money the top priority and credit score the second, unless you are looking at a mortgage app soon.
Keep in mind, probably 98% of the car loans out there are on amortization scedule. Initially, a large portion of each payment is loyal/given to interest; as the loan matures, larger portions go towards paying down the principal. By the time you make your final payment, almost all will go toward principle and a very small amount goes to interest.
example: $12,000 loan @ 3.6% for 5-years
1st years interest: $406.51
2nd year: $322.73
3rd year: $235.80
4th year: $145.60
5th year: $52.01
total interest: $1,162
total interest first TWO years alone: $729.24 compared to $433.41 for your FINAL THREE years
1st months payment looks like this: $182.38 principle / $37 interest
last payment (60th month) looks like this: $218.70 principle / $0.67 interest
Its not a terriably big deal on a low-interest car loan, but on high interest loan, or a long-term loan like a Mortgage for example - you are paying A LOT into interest.
Its one of the biggest secretes banks have, so don't be "that guy" that brags about paying is car loan off 1 year early... he already paid most of the interest 
@Volpes wrote:Keep in mind, probably 98% of the car loans out there are on amortization scedule. Initially, a large portion of each payment is loyal/given to interest; as the loan matures, larger portions go towards paying down the principal. By the time you make your final payment, almost all will go toward principle and a very small amount goes to interest.
@example: $12,000 loan @ 3.6% for 5-years
1st years interest: $406.51
2nd year: $322.73
3rd year: $235.80
4th year: $145.60
5th year: $52.01
total interest: $1,162
total interest first TWO years alone: $729.24 compared to $433.41 for your FINAL THREE years
1st months payment looks like this: $182.38 principle / $37 interest
last payment (60th month) looks like this: $218.70 principle / $0.67 interest
Its not a terriably big deal on a low-interest car loan, but on high interest loan, or a long-term loan like a Mortgage for example - you are paying A LOT into interest.
Its one of the biggest secretes banks have, so don't be "that guy" that brags about paying is car loan off 1 year early... he already paid most of the interest
If the guy gets the car paid off one year early by paying 5-10k towards principal in the first year... then he's actually ahead of the system 
FICO 9: 
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!
Filed Chapter 13 on 6/1/2017 after job loss. Discharged 6/1/2022.
Goal: Gardening!
Just simply put, you pay interest on what you owe. So, when you owe more you pay more. You pay less interest at the end of a loan because you are borrowing less money.
Any payment above the interest charge goes towards principle.