There is no penalty for early payment, and I would like to pay off the car and be debt-free as soon as possible.
2007-01-28 09:22:24 · 6 answers · asked by jelci 1 in Business & Finance ➔ Credit
ABSOLUTELY it is good for your credit. It is even better if you make over minimum payments over a period of time.
Example: You owe $1000, minimum payment per month is $100
A) You could pay them $1000 right now and pay it off
B) You could pay them $500 one month, and $500 (and whatever's incured for interest) next month
C) You could pay them $250 a month over the period of four months (and whatever's incured for interest)
"C" raises your credit score the most- it raises your credit score every month you pay over minimum and again once you've paid it all off.
2007-01-28 09:27:43 · answer #1 · answered by HE'S NOT INTO ME 4 · 0⤊ 0⤋
in case you're paying the automobile off in one shot you do not could desire to situation approximately your credits score, it is not significant as a results of fact no person would be extending credits to you. Get the automobile transferred into your call with the help of the leasing enterprise after which pay it off, this way it is going to additionally improve your credits
2016-12-17 04:39:35 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Who cares if being debt free is good for your credit score. You can use the payments your don't have to make to buy stuff with cash. When you have cash, you don't need credit.
2007-01-28 09:43:40 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
It won't help your credit score to pay it off early, but it won't hurt either. It's still a good thing to do though since it will save you money on interest.
2007-01-28 09:30:11 · answer #4 · answered by Ed G 1 · 0⤊ 0⤋
It's always good to be debt free over owing money.
2007-01-28 09:25:58 · answer #5 · answered by Anonymous · 0⤊ 0⤋
of course.
2007-01-28 09:25:46 · answer #6 · answered by Butch 3 · 0⤊ 0⤋