Trying to hold out closing an installment

[babbles]

So I have a personal loan that I would like to keep open after I make a large payment to near closing it out.  My bank says it would push the  next due date to the approximate payment I make, such as 12 months from now or so.   My payment is $486 per month and I was thinking I would make the payment all the way down to about $500 to keep it open as long as possible even though interest will build up but maybe not as much because the balance will be much smaller.   The account has only been open about 1 1/2 years and I am not wanting close it out completely yet to keep from a dip in points.  Does that make sense?  Thanks for any comments!

[DaveInAZ]

Well, typically for installment loans the monthly loan payment stated in the loan documents is the minimum payment that must be paid every month. But if your lender is willing to consider your large payment as "advance monthly payments" and push the next due date out to the amount of your payment divided by the monthly payment then that will work - you get to keep your installment loan helping your credit mix while drastically lowering the amount of interest you pay. An installment loan balance under 9% of the original loan amount gives the maximum boost to your FICO score.

[babbles]

I'll be at 2% util

[babbles]

no had to put it out of its misery, too much interest per day, $9.74.

[DaveInAZ]

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@babbles wrote:

no had to put it out of its misery, too much interest per day, $9.74.

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How can they charge $9.74/day in interest with the balance only 2% of loan amount?

[babbles]

That's what expressed to the rep, with such a small balance, how can it still be $9.74 per day?  She said she would get back to me.