cancel
Showing results for 
Search instead for 
Did you mean: 

Paying off truck 2 years early....

tag
Anonymous
Not applicable

Paying off truck 2 years early....

How will paying off my $20,000 truck loan 2 years early effect my credit? Will it help anymore than if I paid it off in the original 5 years rather than 3? I'm real close and am hoping it helps my score!
Message 1 of 2
1 REPLY 1
Anonymous
Not applicable

Re: Paying off truck 2 years early....

I'm pretty sure it won't really help if you pay it off early.  If you're applying for a mortgage, it will help your DTI, but as far as FICO goes, paying off a loan early doesn't necessarily mean you are any more or less responsible than someone who paid it off based on the original terms - so it doesn't help or hurt your scores.
 
For a boost to your credit scores, you'd probably be better off paying off all revolving debt (with less than half of your accounts reporting less than 10% utilization).
Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.