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What should I do?

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juggar
Contributor

What should I do?

I recently got a car this past june(16th) and a loan for $22,750(4.5%) from a local credit union that I had some history with. 

 

Unfortunately I totaled the car after I accidentally flipped it. Geico paid off 19K and I got a refund for $1600 from a 3rd party warranty. 

 

I have made my monthly payments on time and the balance is now about $1090. 

 

I wanted the loan to reflect positively on my credit, I heard it needs to report for at least 6 months to have a positive impact on my credit. 

 

I can pay off the balance immediately, no payments are due till May 2015(Geico lump sum offset payments I dont know how).

 

What should I do to get the maximum boost to my credit from this loan? Just pay it off or leave it alone for a few months? 

 

 

Edit: jsut checked and it looks like that 19k payoff boosted all my scores above 700. (equifax - 712, TU - 740, Exp - 730)

Amex Green, Chase Freedom(7.5K), Nationwide Visa Signature(6K), Chase Sapphire Preferred(6k), Cap One VentureOne visa signature (5K) BoA Cash Rewards siggy (5K), BoA travel rewards visa siggy(5K) PayPal Extras Mastercard(5K), Capital One QuickSilver(2.25K) Newegg Preferred Account(2K), Citi Forward(3.4K), Dell Account(2K) Discover IT(2.4K), Chase Slate (1.5K) Citi Diamond Preferred ($800), BestBuy Mastercard ($1500),Bill-Me-Later(1.2K), ,Barclay Mastercard(2K). TigerDirect TigerPay(3.15K), Wal-mart credit card(3.9K), Amazon store card (2K)

equifax - 720, TU - 747, Exp - 734 - report date 11/24/2014
15+ inqs...
Message 1 of 6
5 REPLIES 5
StartingOver10
Moderator Emerita

Re: What should I do?

IMO I would pay it off. You have received the benefit already. I assume you are going for another auto loan or have one already, right?

Message 2 of 6
juggar
Contributor

Re: What should I do?


@StartingOver10 wrote:

IMO I would pay it off. You have received the benefit already. I assume you are going for another auto loan or have one already, right?


Thing is, I am worried that if I pay it off my credit mix will only have credit cards and some store cards. 

 

I think this because my father loaned me 7K out of his HELOC at 4% interest instead of me getting another auto loan. 

 

Basically, I wont have any loans reporting and I think it might hurt my credit. I do have a 6K personal loan from a new thing called "upstart" but its never reported at all. 

 

I also have an ungodly amount of credit inquires(like 15 average) from the damn auto loan "shotgunning" and most were not coded as "auto inquires".

Amex Green, Chase Freedom(7.5K), Nationwide Visa Signature(6K), Chase Sapphire Preferred(6k), Cap One VentureOne visa signature (5K) BoA Cash Rewards siggy (5K), BoA travel rewards visa siggy(5K) PayPal Extras Mastercard(5K), Capital One QuickSilver(2.25K) Newegg Preferred Account(2K), Citi Forward(3.4K), Dell Account(2K) Discover IT(2.4K), Chase Slate (1.5K) Citi Diamond Preferred ($800), BestBuy Mastercard ($1500),Bill-Me-Later(1.2K), ,Barclay Mastercard(2K). TigerDirect TigerPay(3.15K), Wal-mart credit card(3.9K), Amazon store card (2K)

equifax - 720, TU - 747, Exp - 734 - report date 11/24/2014
15+ inqs...
Message 3 of 6
StartingOver10
Moderator Emerita

Re: What should I do?

If this loan is reporting already and you pay it off, it will continue to report for ten years so it will be in your mix. For a loan to count it doesn't have to be "open". Only Credit Karma considers open accounts only and we all know those are fako scores.

 

 

Message 4 of 6
juggar
Contributor

Re: What should I do?

Great, thanks! Then I shall pay it off. 

Amex Green, Chase Freedom(7.5K), Nationwide Visa Signature(6K), Chase Sapphire Preferred(6k), Cap One VentureOne visa signature (5K) BoA Cash Rewards siggy (5K), BoA travel rewards visa siggy(5K) PayPal Extras Mastercard(5K), Capital One QuickSilver(2.25K) Newegg Preferred Account(2K), Citi Forward(3.4K), Dell Account(2K) Discover IT(2.4K), Chase Slate (1.5K) Citi Diamond Preferred ($800), BestBuy Mastercard ($1500),Bill-Me-Later(1.2K), ,Barclay Mastercard(2K). TigerDirect TigerPay(3.15K), Wal-mart credit card(3.9K), Amazon store card (2K)

equifax - 720, TU - 747, Exp - 734 - report date 11/24/2014
15+ inqs...
Message 5 of 6
mtrsprt
Frequent Contributor

Re: What should I do?

You sound young, but show good signs of wanting to do the right thing.  Please try to have more respect for cars and the public roads.  It's pretty hard to "flip" and "total" a vehicle these days, unless its self inflicted by reckless operation that has gotten out of your control.  Lessen learned I hope Smiley Happy  Glad you made out OK without life alterning/threatining injuries.  I built a 800HP 2013 Boss 302, and never even came close to flipping it. ;-)


Starting Score: 521 TU, 597 EQ, 574 EX on 6/20/2011
Current Score: 753 TU, 764 EQ, 766 EX on 02/17/2014
Goal Score: 720-740 Across the board


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Message 6 of 6
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