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New Visitor
Posts: 3
Registered: ‎07-14-2008
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Paying off a loan?

Hey Guys and Girls,
 
I have
New Visitor
Posts: 3
Registered: ‎07-14-2008
0

Re: Paying off a loan?

Sorry I must have doubled posted anyways.
 
I have an auto loan and a student loan that I think is lowering my credit score.  Right now I have the ability to pay off one of them. I'm 21 and don't have much history when it comes to credit.  How much of a boost do you think I would get if I did pay off one of the loans.  Each loan is around $3500.
 
Is there any quick way to increase my credit rating?
 
I'm looking into buying a house and would prefer to have the lowest rate I can get my hands on.
Valued Contributor
Posts: 2,340
Registered: ‎04-08-2008
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Re: Paying off a loan?

How could these be hurting you???...you can lose points by paying them off...installment loans are not calculated like revolving credit...they don't hurt as much...if your applying for a mortgage...paying them will help your DTI....although...I though if there is less than 10 months of payments left...they ar enot counted into your DTI...
Moderator Emeritus
Posts: 7,326
Registered: ‎06-18-2007
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Re: Paying off a loan?



Ruschak wrote:
Sorry I must have doubled posted anyways.
 
I have an auto loan and a student loan that I think is lowering my credit score.  Right now I have the ability to pay off one of them. I'm 21 and don't have much history when it comes to credit.  How much of a boost do you think I would get if I did pay off one of the loans.  Each loan is around $3500.
 
Is there any quick way to increase my credit rating?
 
I'm looking into buying a house and would prefer to have the lowest rate I can get my hands on.



Not much!!!!  I paid off an auto loan early & my scores dropped 7 points!
 
revolving accounts (CC) count for about 30 % of your score and installment only 10%
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