PebHmong Discussion Forum

Life & Living => Money & Investment => Topic started by: bubba005 on December 14, 2016, 09:38:49 AM

Title: Credit Score Help
Post by: bubba005 on December 14, 2016, 09:38:49 AM
For simplicity sake, I'm going to keep this short. Any "smart" remarks not welcomed and would not, does not, help the situation.

Which scenario will benefit my credit score? Specifically, improve my credit score.

I have a $10k car loan (1 year old loan). In an attempt to reduce outstanding debt, I made a $4k payment last week. I have slightly less than $1600 left on the loan. Do I:

1. Pay in full immediately/next month; or
2. Make the scheduled payments until the loan is satisfied.

Currently, I'm thinking #2 is the best option. By going with #2, the bank would report good standing, on time payments, and at the very least have well-documented history of reliability.

Thanks!
Title: Re: Credit Score Help
Post by: Superan on December 14, 2016, 11:26:49 AM
Paying off debt before it comes to term will def hurt your credit score. The credit score takes in account your oldest aged account as a factor in determining your score as well as it will demonstrate to banks you are capable of handling money.
Title: Re: Credit Score Help
Post by: Hung_Low on December 18, 2016, 08:51:27 PM
For simplicity sake, I'm going to keep this short. Any "smart" remarks not welcomed and would not, does not, help the situation.

Which scenario will benefit my credit score? Specifically, improve my credit score.

I have a $10k car loan (1 year old loan). In an attempt to reduce outstanding debt, I made a $4k payment last week. I have slightly less than $1600 left on the loan. Do I:

1. Pay in full immediately/next month; or
2. Make the scheduled payments until the loan is satisfied.

Currently, I'm thinking #2 is the best option. By going with #2, the bank would report good standing, on time payments, and at the very least have well-documented history of reliability.

Thanks!

Just increased the amount of payment and get it done faster... It won't hurt your credit. But remember that everytime you try to get a loan and the loan company do a credit check, it hurt your credit score.
Title: Re: Credit Score Help
Post by: YAX on December 27, 2016, 01:03:36 PM
For simplicity sake, I'm going to keep this short. Any "smart" remarks not welcomed and would not, does not, help the situation.

Which scenario will benefit my credit score? Specifically, improve my credit score.

I have a $10k car loan (1 year old loan). In an attempt to reduce outstanding debt, I made a $4k payment last week. I have slightly less than $1600 left on the loan. Do I:

1. Pay in full immediately/next month; or
2. Make the scheduled payments until the loan is satisfied.

Currently, I'm thinking #2 is the best option. By going with #2, the bank would report good standing, on time payments, and at the very least have well-documented history of reliability.

Thanks!
Paying off your debt is always a better option.
Title: Re: Credit Score Help
Post by: Sleipnir on February 03, 2017, 03:15:52 PM
In your situation, I would pay off the outstanding balance and own it outright.

My wife and I needed to free up some credit...  So we paid off her car balance of $12K in one payment which still had a couple years of payments on it...  Her credit went up, the underwriters liked it... and she got approved for a refinance (she owned her house before we got together).

FICO scores are really important for underwriters, but they will also look at your outstanding debt and your monthly payments when you apply for a loan and whether you can afford to pay them back based on your income.
Title: Re: Credit Score Help
Post by: nooneever on February 03, 2017, 05:24:58 PM
You're already less than 30% of your loan, just pay it off; if you want your score to go up take out a credit card and use 10% of it.  O0
Title: Re: Credit Score Help
Post by: nightrider on February 07, 2017, 06:24:42 PM
Paying off your debt is always a better option.

I agree. Schedule payment is what the banks love and does not necessary mean a better score rating.
Title: Re: Credit Score Help
Post by: moonangel on February 24, 2017, 01:25:12 AM
If you have the cash to pay it off, do it.
Title: Re: Credit Score Help
Post by: YAX on February 27, 2017, 09:29:56 AM
Why worry about credit score? Credit score is just the banks' way of determining who they should allow to owe them money.
Title: Re: Credit Score Help
Post by: Yebleng on March 21, 2017, 12:44:02 PM
I would pay off the outstanding amount. Not only does banks look at your credit score they also look at how responsible you are with your finances. So if you have the means to pay off your bills, do it.