Pay the car off or not to pay the car off?

[Anonymous]

Ok I have an auto loan balance is only 1200 ish.  The question is should I pay off the car loan early or not. 

Background information: 

one student loan 25K never late

one student loan 2500 late once but that is in dispute

car loan 1200 three lates.  (Pay off early or not)

Should I pay it off? Paying it off would bring me down to only two installment account with a monthly payment of 150$, or keep it open to lengthen my on time payment history?  With the auto loan I have 438 monthly obligation, no problems paying on time. 

I due have three credit cards, one target card with a balance of 70$, and cap one card that has a 0 balance.  I do have a closed credit card with a balance of 579, it was closed two years ago due to missing three payments (bad planning when I had my child.)  I have 4 collection accounts with no balances, I have disputed them but they have been verified as mine.  I am going to send off GW letters for them. 

So my real question is wait to pay off the auto loan and pay more interest to lengthen my on time pays, or pay it off and shift my money to my Closed credit card?  Help is really need on this. 

Also will paying off my Auto loan increase my Fico Score? 

Michelle

Message Edited by MichelleRichards65 on 04-22-2008 12:16 AM

[Anonymous]

How many monthly payments have you made on your auto loan so far? This is needed.

Message Edited by ilovepizza on 04-21-2008 11:33 PM

[Anonymous]

I have made 68 payments on the auto loan

[Anonymous]

Pay it off-

[cobra19]

MR - I'd pay it.  Anything you can do to lower debt is good.

And keep on GW'ing the collections.

[haulingthescoreup]

As long as you still have one installment account open (and you do --you have the two student loans), and you've made payments for at least 6 months, or better for 12 months, pay it off. Then you can apply the money you used for monthly payment for revolving debt.

If it were your only installment account, or if you had only paid on it for a few months, I would say keep it open. But in your case, go for the financial benefits.

[Anonymous]

Doesn't matter at this point. Just apply money where it benefits you most. I don't think you are gaining more points by keeping it open on this one.

[RobertEG]

Pay it.

With all due respect, your FICO concerns are with payment history, and not with install util. 

Financial health in not paying more interest is far above short term FICO concerns.

Get rid of it.

Message Edited by RobertEG on 04-23-2008 12:39 AM