Paying off auto loan within two months - Bad for credit?

[Mook]

As soon as the Evo sells, the VW will be paid off by January. Will it hurt my credit at all to pay the loan off that fast? Or is it better to string it along for a few months.

A smug rabbit for your time.

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[Chet Donnelly]

I paid a car off about 6 months after I bought it and it had no impact, good or bad, on my credit.

I don't see why it would hurt your credit for only being 2 months.

 

[Lord Tin Foilhat]

It shouldn't

 

[boostedguy05]

only thing it will do is save you on intrest.

 

[Outlaw]

I typically wait a year on loans as they then tend to help your credit instead of being a wash. If you have good credit, carry on. It shouldn't negatively affect it.

 

[Mook]

Ya, my credit is solid.

 

[Outlaw]

Then go for it. My credit is mid 700's and look at all the quick turnaround I have on cars

You'll be good.

 

[P40E]

I don't see how it could lower your rating in anyway .

You should be also saving up for a set of Volks for summer .

 

[Outlaw]

I don't see how it could lower your rating in anyway .

Between the hard inquiry or two to obtain the loan and the dip it takes when you take out a new line of credit? Not too hard to see. It's a balancing act. Within a few months that change nets zero, but, it does take a momentary dip.

 

[sickmint79]

probably only worth keeping on if one is in a low credit/building credit mode. else you all good

 

[Mook]

Cool. I'll pay the german whore off in January then. Thanks guys.

 

[Outlaw]

I've done it where you needed to finance the car to get a $2,500 rebate or something as well... As long as it goes one billing cycle you've fulfilled your obligation. Pay it off after 30 days, thank you for the free money. No noticeable dip in credit.

 

[willizm]

It won't hurt your credit, but having the loan over a longer period of time will help your overall credit average life which can make your score go up a few points.

honestly I've paid off every car within a year of owning and my credit is over 800. it could probably be a little higher if I let those loans drag out and made payments on time, but at the end of the day your credit score isn't as important as your debt to income ratio. Some people have over 800 credit score but so many loans that new lenders would see as risky. Plus if you are looking at taking out a bigger loan later it could work against you that you have a car loan outstanding depending on how much the house is and what you are putting down.

 

[EmersonHart13]

Pay it

 

[PANDA]

Before I got my mortgage I paid off all my debt (not much) but it actually hurt my credit. If you have zero percent interest financing fuck it, keep paying. Free money. Keep money in the bank or invest it.

 

[Yaj Yak]

 

[firemandan1700]

only thing it will do is save you on intrest.

Check in to it before you actually do. When I bought the Grand Prix many moons ago, I checked with the loan holder (5/3 Bank) they advised it didnt matter if I paid it off early or not, I was still paying going to end up paying the interest. Jackasses...

So definitely double check!

 

[Yaj Yak]

Before I got my mortgage I paid off all my debt (not much) but it actually hurt my credit. If you have zero percent interest financing fuck it, keep paying. Free money. Keep money in the bank or invest it.

something else hurt your credit, it wasn't directly from paying off your debt.

it could have been from the hard hit from the mortgage app, or perhaps you closed some accounts, which could have hurt as well. but i highly doubt it was directly from paying off your debt.

 

[firemandan1700]

Before I got my mortgage I paid off all my debt (not much) but it actually hurt my credit. If you have zero percent interest financing fuck it, keep paying. Free money. Keep money in the bank or invest it.

This! I had about 1,500 in revolving debt that I kept when I was going through my mortgage application and immediately paid it off when I signed my papers. Out of the three credit reports my lowest was 790.

 

[Mook]

I tried buying one before the VW. A) It sold and B) I couldnt hebrew them down on price enough.

 

[EmersonHart13]

BONER ALERT.

that is so nice

 

[Mook]

Ya...it was :wtc:

1990 "Endless" Nissan R32 Skyline GTR! For Sale USA | DriverMotorsports.com

 

[Chester Copperpot]

That's fucking hot. Shame.

 

[EmersonHart13]

That price didn't suck

 

[Mook]

Was still too rich for my blood. It was done exactly how I would have liked it tho. We just couldnt meet in the middle. And I dont blame them. The car sold in under a week.