No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Due to an inheritence, I'm in the position to pay off all of my auto loans as well as an unsecured loan through Prosper. All of the simulators are showing a 1-15 point hit for paying off just one, let alone all three. Should I go ahead and just keep these loans open or take the hit with hopes of recovering points later on? The interest rates are all under 10%. All of my cards are payed off already with the exception of one I use to pay my cellular (AZEO) Details are:
BMW Auto loan: $14,000, 3 years old
Capital One Auto Loan, $3800, 1 year old
Prosper Personal Loan, $3900, 3 months old
I know credit mix is important, but throwing away money in interest kind of bugs me. I've been working hard this last year with scores in the low 700's and I'd like to remain in the 700's. Thoughts?
@Acc-Risk wrote:Due to an inheritence, I'm in the position to pay off all of my auto loans as well as an unsecured loan through Prosper. All of the simulators are showing a 1-15 point hit for paying off just one, let alone all three. Should I go ahead and just keep these loans open or take the hit with hopes of recovering points later on? The interest rates are all under 10%. All of my cards are payed off already with the exception of one I use to pay my cellular (AZEO) Details are:
BMW Auto loan: $14,000, 3 years old
Capital One Auto Loan, $3800, 1 year old
Prosper Personal Loan, $3900, 3 months old
I know credit mix is important, but throwing away money in interest kind of bugs me. I've been working hard this last year with scores in the low 700's and I'd like to remain in the 700's. Thoughts?
I am still learning about all of this but my understanding is that the CRA's like to see at least one active installment loan tradeline on your report so it makes sense that paying off these loans could cause a drop in your Fico score. My parents just build a new home a fews years ago and they could have easily piad for the new house all upfront. My dad chose to pay half down and only do a 10 year mortage. He told me that he can put the other 50% in a high yeild something and set it up to auto pay the monrgage every month. He said that the interest he will earn off of that money is more than the interst rate he got on the mortage so he is making more off of the money he set aside than he would have spent on interest. If you don't have any other active installment tradelines then keeping one might be something to consider. You might also want to check out a credit builder loan from Self Lender. It is an installment loan tradeline but you will not be paying any interest on it. Just a though...
Do you have a mortgage you are paying on?
No sir. Just those three andf cards. Perhaps since I'm in a better spot scorewise, I could refi the Capital One and pay off the others.