Accelerating Loan Payments

[Im-back]

Say you have a 48 month car loan, and treat the loan as a 20 month ammo for payments. Do the algorithms catch that the loan is being prepaid and if so is it reflected in scoring?

[SouthJamaica]

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@Im-back wrote:

Say you have a 48 month car loan, and treat the loan as a 20 month ammo for payments. Do the algorithms catch that the loan is being prepaid and if so is it reflected in scoring?

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No, they don't.

[JoeRockhead]

As @SouthJamaica said No they don't. When you pay above the minimum payment due, many car loans work just like an SSL by simply reducing the next payment due,  followed by moving the next payment due date back depending on how far ahead you are on the minimum payment due.

The only significant score benefit you'd see is when you got the balance to under 9% and only if it's your only open installment loan.

[Im-back]

Thanks both of you.