i have roughly 8000 to pay off and i can pay it off very early and save on interest. but i heard you should pay the minimum every month and build credit , any ideas?
2007-04-25 10:53:14 · 7 answers · asked by doingsomethingproductive06 1 in Business & Finance ➔ Credit
our course dude.... anytime you can pay off a loan you want to do it.
the only benefit you have to this type of loan is you get an right off on your taxes
you dont have to have loans to build credit.... if you have a credit card or to that will work
2007-04-25 11:59:55 · answer #1 · answered by Dave 3 · 0⤊ 0⤋
Debt is never a good idea and you can build credit in a lot of other ways. By having a cell phone bill or a car payment etc... Get rid of the debt because it will free you up to do more with your money. People freak out about credit but there are many ways to earn it. My husband and I own one credit card that we use for gas and pay off every month.
2007-04-25 11:02:36 · answer #2 · answered by Amanda G 3 · 0⤊ 0⤋
You've already built credit by handling this loan well. I say that when a loan can be paid off, you should do exactly that, assuming you won't have to borrow at higher rates for other needs that the $8000 could go towards.
2007-04-25 10:59:39 · answer #3 · answered by Still reading 6 · 0⤊ 0⤋
actually-I recommend talking to the company that your loan is with before paying it off. Some loan contracts have a stipulation that if you pay off the loan early, you can be charged an outrageous fee so they don't loose money for not getting the interest. If they do not charge you for paying off early-then do it. It makes your credit look better by paying off early.
2007-04-25 11:11:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You are always better paying things off. You have credit based on the fact that you've had the loan until now and have paid regularly. Save the interest and pay it off.
2007-04-25 11:02:29 · answer #5 · answered by Angie 6 · 0⤊ 0⤋
Getting out of debt is ALWAYS a good idea. If you live on less than you earn, you don't need to build credit. Even when you want to by a house, 40% down and zero debt says more than a 850 credit score.
2007-04-25 13:27:41 · answer #6 · answered by STEVEN F 7 · 0⤊ 0⤋
the faster you pay something off the quicker it will help built your credit
2007-04-25 11:00:26 · answer #7 · answered by Anonymous · 0⤊ 0⤋