I have three credit cards, a car note and a personal loan-all showing as paid on time--using the score watch i have monitoring my Equifax score for months and last week I pulled my other two reports thru various sites
Equifax was a 596
Experian a 635
Transunion a 631- (scores so low due to a bancrupty I filed almost 4 years ago)
I thought i had finally achived a mid score high enough to qualify me for a mortgage so I let a lender pull my trimerge and the Transunion score was a dismal 588! Needless to say, I am heartbroken but not wanting to give up
My question is this, would it help me to pay off the small personal loan (I borrowed $2800, have about $500 left to pay off) or it more advantagous to keep making the monthly payments??
Well, there are other ways to get your score up, i would continue to make monthly payments so that you benefit from the history of paying it....
Since the balance is low (i am not 100% sure) but if it is factored into your util, it is relatively low...
That all being said, i think we need more information....
I would pull your reports from annualcreditreport.com and see what all is on there, and then come back and let us know so that we may help you.
Well I have all three of my reports and I know the thing that is dragging it down the most is the bancruptcy. That was discharged in 09/08 and since that date I have had no late payments on the cards I have open or my car payment. I had successfully paid off a car note early as well as a personal loan since then. The $2800 personal loan I have now has a balance of $500 so i thought it would look good to pay that off early.
I did have 4 medical bills that wen into collections in 2008 and I was not even aware of them until I started monitoring my credit thru scorewatch so I immediately paid them all in Mar 2011 (they totaled less than $600 which i could kick myself) I just did not know they were there.
Other than that everything is clean, even the mortgage lender said he couldnt understand why my score was low.
All 3 say I have a high number of inquiries (about 20 in two years)
from a scoring point, it doesnt matter whether you pay it off early (from my experience) ... the only thing that would benefit you is if it was counted into your util%...
I would google HIPPA processes to get those removed... (medical collections)