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Preparing for NFCU Auto Loan - Pay off SSL or does it matter?

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keekers556
Regular Contributor

Preparing for NFCU Auto Loan - Pay off SSL or does it matter?

So coming up sooner rather than later it will be time for me to get a new vehicle and I'm likely going to look at NFCU for financing (assuming it's competitive).  I currently have an SSL loan with a tiny amount left to payoff and I'm basically paying like $5/month just to keep the payment history going.  My question is what would look best in NFCU's eyes when they look at my app...have the SSL paid off or does it even matter? I still have my old auto loan on my CR from probably 8 years ago if that matters.  Any other things I should think about when applying with NFCU?  I have a few products with them, but have never had an auto loan with them.  Just want to make sure I give myself the best chance at the best rate I can get.  Thanks for your thoughts.










1 REPLY 1
Remedios
Credit Mentor

Re: Preparing for NFCU Auto Loan - Pay off SSL or does it matter?

Do not pay it off 

While you will lose some points when new auto loan reports, paid down SSL will lower aggregate loan utilization which is scoring metric. 

 

You'll see "SSL works when it's the only loan on file" but thats absolutely not true. You will lose points because your aggregate loan utilization is no longer under 9%, but not as many points as you would if you only have one auto loan at 100% or so. 

 

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