Valued Contributor
my-own-fico
Posts: 1,173
Registered: ‎01-05-2010
Re: Car installment loan

Thanks for the feedback. I happened to stop by the local dealership yesterday and talked with the finance person, who advised me about paying the loan halfway down in one shot. He said, much like you did, that while cutting each of the remaining monthly payments in half would require in a refinance, the extra payment could instead be applied towards the nearest half of the monthly payments, essentially paying them in advance, without changing the timing of the farthest half of those payments. My thought was to experiment with trimming the loan so that it would benefit my FICO scores the most and for the longest. It would be just a few points of course as installment loans don't count much, but in particular it could be educational to observe the impact of a principal suddenly dropping to a mere fraction.

TU 04 820 mortgage preapproval middle score