how long to keep auto loan???

[Anonymous]

Hello, so we just got a car loan so #1 we needed a new car and to fatten up my wife's thin credit file... She got denied for Chase Hyatt card a few months ago... She has since gotten a $1500 limit BoA 123 card and a $17.2k limit CSP... We have the cash to pay off the loan... I'm thinking pay it off in 3 months... Wife says 6 months.. What do you think???

[Loquat]

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@Anonymous wrote:
Hello, so we just got a car loan so #1 we needed a new car and to fatten up my wife's thin credit file... She got denied for Chase Hyatt card a few months ago... She has since gotten a $1500 limit BoA 123 card and a $17.2k limit CSP... We have the cash to pay off the loan... I'm thinking pay it off in 3 months... Wife says 6 months.. What do you think???

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It depends on your interest rate and how much you value the account.  An auto loan opened for 3 months isn't going to do much in either direction for a thin file.  If you're in a 0% auto loan then rather than paying it off, pay 95% of the loan if you just don't want to carry the balance and then let it ride for a while to help thicken your report.   Also make sure that your lender will allow for a larger payment to push payments further out rather than just applying to principle.  You have options...do some research and explorer what is best for you.