Contributor
devhip
Posts: 210
Registered: ‎04-28-2007
Re: Consumer Finance Companies
[ Edited ]
Agree with Tuscani. The last loan I financed was a debt consolidation loan. I have a Cap One auto loan that I've toyed with just paying off because it's high interest and I only owe $7K. But because I had paid and/or closed a bunch of accounts in the last year as part of my credit rebuilding process, I only had a few open TL's thus my file was rather thin. His advice: Keep the Cap One open for another year. Let your other TL's build up a little. Every month it reports as paid on time it's another brick in the foundation, and shows future creditors that you can pay your bills responsibly. I think it was the right move in retrospect. This applies to a specific scenario of course. If I had a gang of open positive TL's then closing one wouldn't have as much effect and I'd dump it to save the interest.

Message Edited by devhip on 05-18-2007 10:28 AM