My husband and I just bought a bed and got the 0% interest no payment for 1 year deal. We are planning on paying it off with our tax return but are wondering how to go about it. Would it be better (as far as helping our credit look good) to make smaller payments each month or pay it all off at once? Would it make that big of a difference since the loan is only $2500. I know it looks good to make payments but since the amount is so small would it really benefit us? We both have pretty good credit so if it would just be a waste of time we'd rather pay it all off at once. Please let me know if you have any helpful information. THANKS!!
2007-02-01 03:27:45 · 2 answers · asked by Chrissy 5 in Business & Finance ➔ Credit
Would absolutely help if you make payments on it for a while. it's a reporting trade line..and the more history they show on that trade line..the better for your credit. I would recommend you split the $2500 evenly over the next 12 months...make the payments on it...improve your credit history, as well have it paid off before any interest is incurred. It's a win - win situation. However, I just re-read your question.....if your already have good credit and aren't working to improve it...don't worry about it...just pay it off and be done with it.
2007-02-01 03:38:03 · answer #1 · answered by Shelly B 5 · 0⤊ 0⤋
I don't think it makes a difference. If you have the money, I'd say pay it off all at once. Otherwise as long as you make payments on time, your credit report will remain in good standing.
2007-02-01 11:36:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋