In your experience how much points did you gain when paying it down to or past the 8.9% and how much points did you lose when finish paying it off?
I am in the process of building my credit. I started with taking out a $1,500 loan from my CU. I thought it was a good place to start since you were approved as long as you were a member for a certain amount of time and had direct deposit. The interest rate was 17.700 (
) and the payment is about $33 a week. The term was from October 2019 to October 2020 (my final payment being 10/16 of this year).
I've been reading 8.9% and you get a boost so I decided to pay it down it a little under 8.9%. On July 17th I still owed $379.47 so I made a big payment on 21st; bringing it down to $124.21(which should reflect on my next credit report update.
The bank automatic system was still pulling my weekly amount of $33. The balance currently is $92.66 and the next payment isn't supposed to be until 9/25/20. I spoke with the loan officer and she advised me to continue to pay it off to save me on the interest. She said the interest rate is calculated by the day. If I am going to be saving a couple of dollars I would rather just ride out the full term and keep the account open as long as possible.
I am trying to determine how many points I will lose if I do pay it off early?
@Anonymous wrote:In your experience how much points did you gain when paying it down to or past the 8.9% and how much points did you lose when finish paying it off?
I am in the process of building my credit. I started with taking out a $1,500 loan from my CU. I thought it was a good place to start since you were approved as long as you were a member for a certain amount of time and had direct deposit. The interest rate was 17.700 (
I've been reading 8.9% and you get a boost so I decided to pay it down it a little under 8.9%. On July 17th I still owed $379.47 so I made a big payment on 21st; bringing it down to $124.21(which should reflect on my next credit report update.
The bank automatic system was still pulling my weekly amount of $33. The balance currently is $92.66 and the next payment isn't supposed to be until 9/25/20. I spoke with the loan officer and she advised me to continue to pay it off to save me on the interest. She said the interest rate is calculated by the day. If I am going to be saving a couple of dollars I would rather just ride out the full term and keep the account open as long as possible.
I am trying to determine how many points I will lose if I do pay it off early?
In my case it was around 30 points, in both directions.
@Anonymous wrote:Thank you @SouthJamaica for your response. That's quite a hit for a person like me lol
It was quite a hit for a person like me too.
I gained 20 points on Experian (only daily report I have) going from 745 to 765 when my auto loan went under 9%. When that loan dropped off and I had no installment loans (CC utilization also went to 12% from under 9%), it fell to 726. Adding back two installment loans at high (99% utilization SLs) and bringing my CC utilization back to 2% I'm only back up to 734.
AU: 