2006-12-07 10:06:41 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
Yes...sort of. You gain credit score points by using credit according to their terms - which means paying it off on schedule. Early payoff doesn't show you are playing the game by their rules.
Forget your perfect score...and pay it off. You want money saved or do you want a perfect score? And what are you going to do with a credit score anyway? You sound disciplined enough that you won't even need it.
Honestly, after the mortgage is obtained in your life, forget your credit score even exists...and pay as you go.
2006-12-07 10:11:03 · answer #1 · answered by dm_dragons 5 · 0⤊ 1⤋
It will not hurt you, unless it is the only credit you have. Credit is a rating lenders use to see if it is risky to lend to you. You recieve points for having credit and paying it on time. You must establish a history of this to have a high score. As long as you have some other payments to help build your credit then you will be fine. If everything is paid off then you end up in a similar class as a teen that never had credit. They haven't been late, but havn't paid the bills either. That makes you a risk because lenders do not know your patterns.
2006-12-07 10:17:06 · answer #2 · answered by Ron B 3 · 0⤊ 0⤋
No such thing as PERFECT score. No one on the planet actually has the max 850 FICO.
That being said, assuming you have little to zero revolving (credit cards/lines of credit) debt, paying off the car can help, to a small degree.
Lack of installment accounts can be a negative, so if you have no mortgage or other installment account, you might go backwards.
But if you have the money, and are paying interest on the car, just pay it off. If your score is PERFECT already, 10-20 points up or down won't matter anyway.
2006-12-07 10:11:22 · answer #3 · answered by Anonymous · 3⤊ 1⤋
Paying it off early will only save you some money in interest. A longer pay history is better in the long run to build credit. A 3 to 4 year pay history is better than 6 months pay history especially if you have limited credit experience.
2016-05-23 04:41:02 · answer #4 · answered by ? 4 · 0⤊ 0⤋
Even if it did- if you are in a position to pay off debt, take it. Paying in an early or timely manner would never take your score down far enough where it will hurt you...
2006-12-07 10:13:21 · answer #5 · answered by morlock825 4 · 0⤊ 0⤋
No, it will reduce your amount of outstanding debt. It will also add credit depth to your credit history, and reduce your monthly liabilities signficantly. If your credit score is perfect, you're fine. It doesn't even need to be "perfect". Once you're over 720 it is smooth sailing. Anything higher is simply bragging rights.
Learn about credit, mortgage, and personal finance:
http://www.thetruthaboutmortgage.com
2006-12-07 10:15:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
No, it may actually help. FICO looks at how many accounts you have with a 0 balance. That means you paid it off!
2006-12-07 10:24:11 · answer #7 · answered by Kevin K 3 · 0⤊ 0⤋
the faster you pay something off the better your score is.
2006-12-07 10:08:42 · answer #8 · answered by Anonymous · 0⤊ 3⤋