Ok, here's the deal. I just bought a low-mileage 98 Mazda pickup about 2 weeks ago and got it financed for 3 years at $197.00 a month. This is the first big purchase/loan that I've ever had put on my credit.
I have enough money in my checking account to pay if off right now, but I had it financed so I could finally build some credit. With that said, my question is this. Would it look better to pay it off say next month or stretch it out over a couple of months? I'm asking because I'm already not very happy with this truck.
2006-12-09 11:23:16 · 11 answers · asked by midnightslasher83 1 in Cars & Transportation ➔ Buying & Selling
If you want to build credit keep the car loan open because it is an installment loan and will benefit you for future vehicle purchases. Do not pay it off with a credit card because they are revolving accounts and do not help your score as much as the installment loan will. If you want to save money however, pay off the loan. I hope this helps.
2006-12-09 12:21:27 · answer #1 · answered by The Auto Evaluator™ 7 · 5⤊ 1⤋
If you don't mind paying the interest, (which probably isn't much on a $197 payment) keep paying on the loan. The credit bureaus really want to see long term debt payments. It will help your score. If you hate the truck and will sell it soon, for sure keep the loan and keep making the payments to help your credit.
2006-12-09 12:04:02 · answer #2 · answered by Papa John 6 · 0⤊ 1⤋
That is a hard deal. If you are building credit, i would drive it, make double payents, one to your savings, and one to the truck, because if you trade it early, or pay it off early it does not hurt you to much, just hang with it, by making double payents, you are just giving your self a reserve until you are ready to buy the truck of your dreams, vs paying it all to the bank at one time....
2006-12-09 12:04:47 · answer #3 · answered by bryan_w74 2 · 1⤊ 0⤋
Not happy with the truck? Mechanical problems? TAKE IT BACK! What is warranty on this truck from dealer you purchased it from?
Let the loan ride full term. This is how credit is formed. DON'T BE LATE ON ANY PAYMENT EITHER.
2006-12-09 11:28:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Paying off quickly will not help your credit rating. You'll have a good credit rating if you just make the required payments, you don't have to do more than that.
There are other reasons why you might want to pay off quickly though, but you should not do it for credit rating.
2006-12-09 11:32:08 · answer #5 · answered by Julian A 4 · 1⤊ 0⤋
yes it does help a lot to do this,,i got my credit built up by doing that and using credit cards and paying the balance of at the billing time,also you can take out some really small loans ,and pay them off real fast,,this will help a whole lot also,,if you do this right in a few ears you can really build your credit up really good,it takes time though,,it don't happen all the sudden,,good luck i hope this help,s.,,have a good x-mas.
2006-12-09 11:31:55 · answer #6 · answered by dodge man 7 · 1⤊ 1⤋
Pay it off if you have the cash you can spare. If you want to build credit then take out a credit card; buy something cheap every month and PAY IT OFF every month. Easy as that.
2006-12-09 11:32:20 · answer #7 · answered by ohio_mike 2 · 0⤊ 2⤋
i'd say pay it in 12 months. 400 something a month. but if you're not happy with it, trade it in, you'll probably lose money. but theres nothing worse than driving a car you dont like everyday, not to mention paying for it everymonth.
2006-12-09 12:13:01 · answer #8 · answered by gr 5 · 1⤊ 0⤋
Honest Mike is right, a post or so before mine. I went from bad to incredibly good and I did it just like he said.
2006-12-09 11:39:44 · answer #9 · answered by AnotherLameOpinion 2 · 0⤊ 1⤋
Pay it off because their charging you interest and it adds up trust me pay it off
2006-12-09 11:28:32 · answer #10 · answered by Anonymous · 0⤊ 1⤋