I wanted to know how long should I hang onto a payment plan that I have on my motorcycle. Is it like a car and you should hang onto it for at least 2 years. The loan is through Kawaski credit so its on like a credit card. I was wondering should I pay it off as soon possible. Please note your sources!
2007-09-29 18:03:13 · 8 answers · asked by bigj82nd 1 in Business & Finance ➔ Credit
Pay it off as soon as possible. You are paying interest on the account that you will never get back. Paying off sooner also helps your credit score. If you are worried about building credit, you got one loan already you can get another one if you need to. Cash is the best policy.
2007-09-29 18:15:47 · answer #1 · answered by Ozzie 4 · 1⤊ 0⤋
Any bill you owe regardless what type of credit it is, you should always hang on to it & PAY IT or else you can ruin your credit. Always, always.....pay your bills regardless. And yes....your motorcycle payment plan is just like a car payment plan. If you can afford to pay it off as soon as possible, then go ahead & do that.
2007-09-30 01:19:17 · answer #2 · answered by sugarBear 6 · 0⤊ 0⤋
You should have paid cash in the first place. You don't finance toys!
Of course you should pay it off if you can. Why wouldn't you?
My source? Practically debt free with great credit and I pay cash for almost everything I buy. No bills hanging over my head and a good emergency fund. Able to sleep at night.
2007-09-30 01:07:32 · answer #3 · answered by Anonymous · 1⤊ 0⤋
What is your goal on hanging onto it?
The real question is: what are you going to do with that money otherwise??
For me it would depend on if there were any prepayment penalties, what the intrest rate is, and what my other loans/assests look like.
As long as there are no pre-payment penalties, pay off your highest intrest loans first (in my case, my mortgage rate is higher than my car loan -- so I'd definately work on that first).
However, if a CD is paying at a higher rate than my loan is costing me -- it would make more sense to have my money in such a CD or another higher rate investment than to use it to pay off loans.
2007-09-30 01:10:59 · answer #4 · answered by contemplating 5 · 1⤊ 1⤋
If it's a higher interest rate, I would go ahead and pay it off, it will raise your credit score because it shows you made good on payments for two years and then paid it off and it also shows that you owe less money, which also raises your credit score. Basically helps your debt to income ratio.
2007-09-30 01:09:32 · answer #5 · answered by frr_ls 2 · 1⤊ 0⤋
Will paying it off early save you money ? I mean will you save the interest buy paying it off early. if so do it if the contract calls for full payment of interst no matter what get 1 payment ahead and pay it on time.
KNOW YOUR SALES CONTRACT.
2007-10-04 00:50:39 · answer #6 · answered by dadw5boys 4 · 0⤊ 0⤋
The higher the % , the faster smart people pay them off .
$$$$$ smart people avoid paying % like the plague .
The source : brain , IQ over 2
2007-09-30 01:37:18 · answer #7 · answered by kate 7 · 0⤊ 0⤋
Hi,
You can visit http://www.autoloanguide.info for some useful info related to your query. Good luck!
2007-09-30 02:02:33 · answer #8 · answered by Alvin 2 · 0⤊ 0⤋