Ask Experts Questions for FREE Help !
Ask
    jc4dakid's Avatar
    jc4dakid Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 17, 2008, 06:02 AM
    Paying off small loans to build credit
    When paying of small loans?

    I'm trying to improve/build credit. I have a loan that I can pay off completely or continue to pay on it. Which looks better on your credit report?

    Payoff would only save about $50.
    Life of the loan is 15months
    Already paid 5 months into loan
    progunr's Avatar
    progunr Posts: 1,971, Reputation: 288
    Ultra Member
    		  
    #2

    May 17, 2008, 09:13 AM
    If I assume, which can sometimes get me in trouble, that your debt to income ratio is in line, then making regular on time payments will do more to increase your credit score than paying them off will.

    If you do have debt to income ratio issues, then paying them off may be a better option.

    If you really want some bang for your buck so to speak, you need to have an installment type loan, such as a car loan or mortgage as these loans give you more points for on time payments than a credit card or revolving type account will.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

I need a mentor to guide me to build my Small Business [ 3 Answers ]

I am trying to build my Business and I having a lot of problem. I don't know if somebody can help me to do that by putting me in touch with Russel Simmons because he inspired me a lot and he is my idol. Thank you very much

What about small loans [ 2 Answers ]

Ok so in 2006 I lost my job which paid really well for the area I live in. Well thankfully my husband worked so we still had some income. We didn't adjust well to the income change. So now we have been through foreclosure and have at least 120 days past due on all credit cards, small loans, and our...

Trying To Build A Small Tub? [ 3 Answers ]

My wife and I recently bought a fixer upper. The bathroom is extremely small. I was looking for a showertub, but I only could find them in Europe. I was thinking of making a base of a shower with tiles and then builing it up so that it could still hold water like a tub. The reason behind this whole...

Paying car loans early [ 2 Answers ]

I saw on TV about people who paid car loans off early were entitled to a refund. Does anyone know anything about this?

Build Credit? How? [ 8 Answers ]

I'm 19 and am in my first year of living on my own. I have been thinking about buying a new car, but the problem is I have NO credit. I have been approved for loans, but the interest rate is ridiculous! I don't want to get a credit card because everyone older and wiser than me says it I'm just...

View more questions Search