@Fico2Go wrote:I've had an auto loan for over two years. I can easily pay off but lately I have been noticing that the minimum payment for the loan has been reduced due to my multiple payments per month. Not only is the minimum payment lower but payment is NOT REQUIRED for 6-7 months down the road.
Of course, we know that this is the banks way to keep using paying interest and for interest to catch up.
My question is whether it is advantageous to keep a small balance reporting so to keep the auto loan tradeline active and increasing fico scores?
If the auto loan is paid in full the CR will show account closed paid in full but my understanding is that without an open auto loan tradeline my fico scores will also drop.
Is there any truth to this?
I'm trying to maintain an INSTALLMENT tradeline to optimize my credit scores.
Seems like you've already answered your own questions. I would keep it open for history purposes, you know you'll be good on it so might as well let it report and keep your credit "mixed".
