cancel
Showing results for 
Search instead for 
Did you mean: 

Paying off a loan?

New Visitor

Paying off a loan?

Hey Guys and Girls,
 
I have
Message 1 of 4
3 REPLIES
New Visitor

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.
Message 2 of 4
Valued Contributor

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...
Message 3 of 4
Highlighted
Moderator Emeritus

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%
Message 4 of 4