Frequent Contributor
bigtim
Posts: 359
Registered: ‎06-06-2009
Re: Pay off majority of auto loan?..

megaton wrote:

 

If I were to get financing through a dealership with an outragous interest rate, and pay off the loan within 6 months to avoid paying too much interest would it still improve my situation?  

 


NOT necessarilly. If it's a buy-here, pay-here program, they may not report to CRAs. I would check to see first. If they don't report, you could pay for 4 or 5 years, never miss a payment, and it will do ZERO for your credit rating.

 

Also, everything else being equal, the longer you pay on a loan, the better it improves your credit. Good luck.

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