Valued Contributor
Posts: 1,228
Registered: ‎05-10-2012
Question about paying off/closing installment loan
[ Edited ]

Hello all,


I generally spend my time in "Rebuilding Credit" so that should tell you where my current status is.


I have an unsecured loan with a co-signer that I opened two years ago to help pay off a car I was upside down on, as well as purchase another cheap car.  I have 4k left on it, pay 185/mo.  It is my only installment loan and has impeccable payment history.  I've been working on my credit for the past 8 months or so, paying things off, working other strategies, and I'm finally in a position where I can attack this loan.  


My question:  I am probably able to pay this off in the next 4 months. What are the implications of this?  It is my only active installment loan outside of student loans, but I believe those count different in the credit mix?  Because it has such good payment history and continues to be paid perfectly, is this also positively influencing my score to the point I might be slowed in my progress if I pay it off early?


Edit:  To add, there are 26 months left on the loan, interest rate is 13.24%

  • Current: EQ FICO 706, TU FICO 701, EX FICO 706 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $36,700
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