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Need advice on a 35k loan I acquired today?

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Anonymous
Not applicable

Re: Need advice on a 35k loan I acquired today?

I'd pay the loan off. If you're getting $35k in stock bonuses, that means you earn over $200k per year, maybe even $400k. Money is no restriction for you. Pay the loan and have one less thing to remember 

Message 11 of 13
Anonymous
Not applicable

Re: Need advice on a 35k loan I acquired today?


@Anonymous wrote:

I'd pay the loan off. If you're getting $35k in stock bonuses, that means you earn over $200k per year, maybe even $400k. Money is no restriction for you. Pay the loan and have one less thing to remember 


Yes and Thank you . I am finally back with my credit and just thought that the loan would help boost my credit worthiness and make me look better in front of lenders for future home loans etc: Thanks you for your imput.. 

 

Message 12 of 13
Revelate
Moderator Emeritus

Re: Need advice on a 35k loan I acquired today?


@Anonymous wrote:

@SouthJamaica wrote:

4. If on balance the 95% paid off loan is helping your scores, keep it that way as long as possible, making miniscule payments on it. If, on the other hand, it's hurting your score, pay it down to zero and forget about it.  You might find that it helps you with 1 bureau and hurts you with another; in that case you need to decide which bureau you care about most.


He may not have the option to keep it that way very long. In my experience, most loans require you continue to make the agreed upon monthly payment even if you pay the principle down. Alliant Credit Union and a few others are notable exceptions. It's something he would want to be clear about for his particular loan before beginning this strategy.


Actually are you sure about this?  WFDS, USAA, Alliant, Cashcall in my personal experience all work "correctly", and the list goes on from other people's reports (Penfed, Federal student loans, etc ad naseum).  The only notable exception that does NOT is DCU.

 

The majority as I understand it will apply a non-principal payment to the current payment and then successive payments.  DCU actually will do that but then you get a nasty gram from their customer service staff and they reset your future payment date to 3 months ahead.

 

Which lenders have you found that do that as it appears to be overwhelmingly the other way?

 

Edit: to be clear, if you make a Principal Only payment, yes it will not change your date.  That's not what I'd recommend in this scenario, I'd do exactly what SJ suggested and make a regular payment down to some stupidly small balance where the interest rate is irrelevant and just see what it does.

 

I wouldn't leave an unsecurd personal loan hanging out in today's financial market OP, interest rate is undoubtedly higher on any reasonably expected return at this point and I'd want out from under it personally.  Worst case they do something like DCU does and you wind up having to pay it off, but that's not the end of the world... can just sort it with an Alliant share secured loan for that part of the scorecard for way cheaper.




        
Message 13 of 13
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