BOA Loan repayment question

frk1 · ‎10-10-2007

I have a 15K LOC with BOA that I have borrowed 5K on. The 5K loan is four months old. I can afford to pay this loan off but should I? I have excellent credit (all between 760 and 790, utilization about 16%). In particular, I am interested in continuing to do business with BOA in the future and would like a larger credit line. The interest is running me about $40 a month. But I don't mind paying it for a few months more if it is likely to improve my FICO score or put me in a better position to ask for a credit line increase in the future. On the other hand, if it's not going to benefit me much I'll just pay it off.

Any advice?

ShanetheMortgageMan · ‎10-10-2007

I can't speak from past experience, but I think a good way to find out if continuing to pay on it would benefit you by being able to get a larger LOC is to just call up Bank of America and explain what you are looking for, and what'd you need to do in order to get it. Without too much hassle I think they should be able to tell you if you qualify for a larger LOC now, or if continuing to pay on your existing BofA loan would help you get it. I do know that BofA has a "custom score" model that is different than FICO scores.

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Anonymous · ‎10-11-2007

How much interest are you paying for it? Look at these stocks PVX, PGH, ERF. They pay 15 percent dividend. You can take loans with lower interest and invest money in these kind of stocks and make more money. You will build a good credit history plus make money. How did you like that idea

? It is a win win situation for you.

Boswd · ‎10-11-2007

You already have nearly a perfect score. I would not worry about paying it off. One I highly doubt it's going to hurt your score by paying it off. And two you are getting rid of that debt and could use those monthly payments for something else, money for vacation pay off some other debts etc. It also shows BofA that you can take out LOC and pay it back with no hassels which is always good.

I think people have to stop being so obsessed with whether or not your score is going to go down a couple of points that you stop do things that are of the best interst to you are your family especially when you have a score like that. If there's no early repayment penelty then do the right thing for yourself and pay it off.