topic Re: Is this auto loan hurting or helping me? BoA in Auto Loans

Is this auto loan hurting or helping me? BoA

lambomoonboy — Wed, 16 Feb 2022 13:24:41 GMT

Hello

I have a Bank of America auto loan I've been paying down since 2016, original amount is 128k, balance is now 42k, 72 no/6 year term. I extended it 6 months and there's about 20 payments left (I extended 6 months covid relief). It's showing perfect payment from 2016-2018, but 2019/2020 there were at least 10 late payments. 2021 is all on time.

should I close the loan by way of sale or keep paying it down for the payment history? Below Is a snap shot of my credit from another post:

The road to rebuilding my credit has been pretty good but I need advice on what to do going forward now, as my Equifax is decent (hit 725 recently), but the other two are low. I want to have a good chance of getting a mortgage soon, once I have good income to show, and I don't think just Equifax will cut it. The reason being, my dispute efforts were most succesful with EQ. They removed all the bad accounts tarnished with lates and deliquencies, and all the open accounts are in good standing/no lates (except the BoA). I used that as a segway to open 8 new accounts, in the last 2 months and a total of :

Discovery 200 NEW

Capital One 300 NEW

Reflex credit 750 NEW

Self Credit card 200 NEW

First Digital 300

Applied Bank 200

---other products---

Cred AI 1500 NEW

Grow credit NEW

Grain credit 600 NEW

One financial NEW

Self reporting 200

BoA 43,000 balance (5 years old, current, but many lates)

Re: Is this auto loan hurting or helping me? BoA

pizzadude — Wed, 16 Feb 2022 14:42:15 GMT

Paying off this loan won't change or reduce the impact of the late payments. How bad were the late payments on the auto loan?

Also is this your only installment loan?

Re: Is this auto loan hurting or helping me? BoA

lambomoonboy — Wed, 16 Feb 2022 18:56:32 GMT

Hey, mostly 30 days late but some are 90 and there are 10 or so. It's my only instalment auto loan other than self financial

Re: Is this auto loan hurting or helping me? BoA

Loquat — Thu, 17 Feb 2022 00:01:40 GMT

@lambomoonboy wrote:
Hey, mostly 30 days late but some are 90 and there are 10 or so. It's my only instalment auto loan other than self financial

The pain you're feeling is coming from the late payments. Unfortunately, closing the loan isn't going to stop the sting. You're debt to income ratio will improve but you're going to have to weather those late payments until they age off.