the car loan guy said i should keep the loan for at least 18 months so that i can be approved for a house loan in the future. is this true? i think the APR on the car loan is too high which is why i want to pay it off as soon as possible.
2007-06-05 10:49:22 · 9 answers · asked by joe b 4 in Business & Finance ➔ Credit
Yes and no - proving that you can pay a loan off in installments is a good way of building your credit score. However, paying off your debt early is not going to do bad things to your score. The car loan guy has an ulterior motive for wanting to keep you paying as long as possible: the longer it takes you to pay off that loan, the more money goes into his pocket.
2007-06-05 11:00:38 · answer #1 · answered by triviatm 6 · 0⤊ 0⤋
If you have credit cards then first pay them to below 30% of the limit that you have with them, that will raise your credit score the most. Your credit to debt ratio, or available credit. Then you can go ahead and pay off the car reducing your total debt load and monthly payments you should then not only have a better rating, but be eligible for a larger mortgage.
2007-06-05 10:57:08 · answer #2 · answered by Pengy 7 · 0⤊ 0⤋
Your credit status will go through considering the fact which you will now no longer have selection on your varieties of bills. This on my own hurts your score. besides, you will choose an particularly extreme debt to credit cut back ratio--assuming you would be on the threshold of maxing out the cardboard after shifting those loans to it. which will further depress your score. even although, if the activity cost reductions are substantial--say 3% or greater--i could do it besides. you will choose the debt paid off speedier which will help your credit in the long-term. issues to think approximately although: a million. purely try this in case you're disciplined adequate to maintain making your comparable fastened money or larger to the mastercard. you will finally end up paying a lot greater in the long-term in case you enable that debt sit down on a mastercard for years and years without paying the critical. 2. determine the cardboard cost is fastened and do under no circumstances pay late, or they might jack it up. 3. Your student own loan debt is tax deductible. So make certain your cost on the mastercard is a lot under your fairly cost on the student own loan (own loan cost x tax cost is incredibly cost you're paying).
2016-10-06 22:43:45 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Pay off non-secured debt (credit cards). These are what hurt your rating. Keep the car loan.
2007-06-05 10:52:44 · answer #4 · answered by David J 1 · 0⤊ 0⤋
Credit scores are mostly improved by revolving accounts showing that you make payments ontime. Sometimes closing accounts can either lower your score or keep it at a stand still. I would either keep the car loan or try to refinance the loan.
2007-06-05 11:04:50 · answer #5 · answered by Lady 2 · 0⤊ 0⤋
pay it off, and if you have credit cards, pay them off and cancel all but 1, the bank looks at out going bills, and what you have coming in, bank told me to cancel credit cards because of the 0 balance, if you have say a 10,000$ limit, they say you could charge on the card, and make it harder for you to pay home loan, you might try a credit union for a house and car loan, they are easy to join, you have to establish credit to get credit
2007-06-05 10:58:01 · answer #6 · answered by Dms 3 · 0⤊ 1⤋
To improve your credit rating you need to keep up with your payments and or pay off all of your payments. Getting yourself into trouble will only hurt your credit rating.
2007-06-05 10:57:45 · answer #7 · answered by Achilles 2 · 0⤊ 0⤋
Check out this website for an answer. You can search the forums section or you can email them and they will repsond with an answer for you.
It is a website for a radio show that I listen to. Gives great advice about alot of stuff!
2007-06-05 10:57:04 · answer #8 · answered by Scott C 1 · 0⤊ 0⤋
you should pay it little by little
2007-06-05 11:14:34 · answer #9 · answered by iLoVe_sKaTeRs 2 · 0⤊ 0⤋