Re: Pay off majority of auto loan?..
08-02-2009 07:28 AM
Yes, obviously if the lender does not report to the CRA's then it won't help your FICO or credit.
Indeed. I brought this to the attention because I work at a dealership. People frequently come in shopping for a newer vehicle and I ask "How is your credit?". Some respond that it should be good, I just paid off this car from XYZ dealership, never missed a payment, etc... There are some dealerships in my area that offer BHPH programs, but DO NOT report to CRAs. Therefore, customers are majorly disappointed when they find that they have paid faithfully, thousands of dollars over several years only to find out that their credit rating did not benefit at all from this.
I thought it was important to note this to the OP (or anybody else in a similar situation) given their circumstances, especially considering the fact that they were willing to sign to a high interest loan in order to help build their credit rating.
So what would appear that I was stating the obvious, some consumers or inexperienced buyers forced into a sub-prime situation like this, simply aren't aware. A noteworthy caution...
12/2012 - Discover (ICL 3,375 CLI to 5,375 05/2014)
12/2013 - Chase Freedom (ICL 3,500 ACLI to 4,500 07/2014)
03/2012 - Gander Mountain MC (WFNNB) 7,000 CL
04/2012 - Ace Rewards Visa (US Bank) 12,000 CL
Back to gardening for a year or two