New Member
Posts: 1
Registered: ‎02-06-2014

CU personal loan payoff question

[ Edited ]

First Post! 


Discharged 11/13, did a lot of attempted clean up and things are looking up! Yesterday my EQ was 635 (haven't ran the others yet), and, for the first time in my life, my DTI is great! Trying to follow the plan and got approved for an unsecured credit one card yesterday and will be doing the small monthly purchase/payoff  before statement thing. 


I had a small student loan (1K) that I didn't realize was maturing and Sallie Mae (AKA the devil) would not work with me AT ALL, and I didn't want it to hit my credit. I went to my CU and applied for a personal loan in that amount and was approved (21.9 20.25% interest for 12 months, no PP penalty) and they are paying off Sallie Mae.


I plan on paying the CU loan off within 6-8 weeks, probably in two 500.00 payments, because that interest is insane, but do I hurt myself in any way by paying it off quickly? Is there a strategy to getting the most positive credit impact with this line of credit? How does paying off early vs. say 3-4 months look to the CU in case I wanted to get a car loan or something later on?





Community Leader
Valued Contributor
Posts: 11,413
Registered: ‎12-13-2013

Re: CU personal loan payoff question

IMO one should keep this type of loan open at least 6 months to get best results in eyes of future lenders. I would just pay the principle down to the point where it will pay out after the 6th payment, this will minimize the interest on the loan.

EX Cred Ses 01/15: 765 ; EX Fico 04 V2 06/14: 775; EX Fico 08 BC 01/15: 839
EQ Beacon 5.0 12/14 757
TU Fico 8 01/15: 805

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