02-05-2013 07:19 AM
Hello I have taken out a Dirt Bike Loan to help my credit its the only loan I have besides 6 credit cards the loan right now for the bike is at 2,367.11 been paying it since Nov 2012, if I do the monthly payments of $80 it will be paid off on 11/15/2015 3 Years total, but my whole plan is to pay it off in Nov of 2013 it will make it a 1 Year of none late payments .. will that affect my credit score?
02-05-2013 10:47 AM
02-05-2013 06:51 PM
Installment loans do not have a big impact on scores unless it is a mortgage.
It is possible you may lose points once its paid off. Your mix of credit will end which is part of the scoring process.
But some have noted a small increase. So YMMV depending on whats on your reports at that time.
Ok thank you so much
02-06-2013 10:31 AM
Pay it off early, save yourself some money in interest. The account will sit there for 10 years from the date it was paid off and add to your AAoA.