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SSL payoff or monthly payment

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Anonymous
Not applicable

SSL payoff or monthly payment

So I got a SSL from my local SunWest FCU. Amount is $1000 and payoff over 12 months. Wanted to do the payoff to under 8.9% technique, now that I think about it, I want to build a relationship with my CU for future Car loan and/or mortgage. BK7 discharge 6/30/17, current credit score 623 Experian.

So what do you think is best? Payoff and get the score boost or pay every month and show responsible payment history with them? Does it matter?
Message 1 of 3
2 REPLIES 2
SouthJamaica
Mega Contributor

Re: SSL payoff or monthly payment


@Anonymous wrote:
So I got a SSL from my local SunWest FCU. Amount is $1000 and payoff over 12 months. Wanted to do the payoff to under 8.9% technique, now that I think about it, I want to build a relationship with my CU for future Car loan and/or mortgage. BK7 discharge 6/30/17, current credit score 623 Experian.

So what do you think is best? Payoff and get the score boost or pay every month and show responsible payment history with them? Does it matter?

I think it doesn't matter.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 2 of 3
Anonymous
Not applicable

Re: SSL payoff or monthly payment

If you have no other open loans at month 11, you should add another SSL and pay it down to under 8.9%.  But when you do that, it's best to get much longer term loan, e.g. 36 month, or even better 60 month.

 

Also, be sure to discuss the implications of the massive paydown (to 8%) that you plan to do in the next week or two.  You need to make sure they are ok with you not doing any more payments for the next 9-10 months.  If they insist that you keep up the monthly payments, the big paydown will shorten the life of your loan to 2-3 months.

Message 3 of 3
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