06-19-2007 12:27 PM
06-19-2007 01:25 PM
06-19-2007 01:30 PM
06-19-2007 01:36 PM
Your FICO scores will rise a little (maybe none at all) by paying the auto loan off quickly. You stand to gain more by paying on time for the whole term of the loan.
FICO_Focused wrote:Does anyone know the benefits of rapidly paying down installment accounts? We all pay our CCs more than the minimum, keep utilization low and reap the benefits there, and they are significant.But what is the preferred / optimal scenario for Installment loans Auto loans specifically?I have ~$30k owed on a 60 month plan w/ 57 months remaining... Is there any FICO benefit from paying down the beginning balance at an expedited rate? Or is it just the timely payments that are taken into consideration here?Take Care.
06-19-2007 01:36 PM
06-19-2007 01:38 PM
I completely recommend paying it off early if you can because:
1. Less interest to pay!
2. Looks better to lenders for income reasons.
3. You still get points for the loan being paid.
4. The debt is counting against you on your score.
If you choose to not pay off early.
1. More history.
2. Lenders see you as more profitable.
IMO pay off as fast as you can unless you have 0% int.
There are other ways of making history that will cost you less $$.
06-19-2007 01:45 PM
06-19-2007 01:54 PM
06-19-2007 02:00 PM
06-19-2007 02:01 PM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.