credit question..

[phatcow]

how much would paying off a car loan raise my credit/fico score usually assuming 100 percent good standing , on time, etc

 

[Beau]

Probably depends on how much of your total debt the balance on your car represents.

 

[phatcow]

bump?

 

[RossMAN]

What was the original car loan balance?
What were your monthly payments?
How many months are left?
What is your current car loan balance?
Do you have other high debts (e.g. cc's maxed out)?
Do you know what your current FICO credit score is?

 

[phatcow]

original balance is about 20k
current is 14 and some change
i have about 4 more years on it, but i am going to refinance for a shorter term wiht a better rate
my credit cards hold about 25 percent balance on them
my current fico, being 19, is 620

 

[RossMAN]

So you've made at least 12 payments on time so far, right?

I'd say you have a good chance at refi-ing it, lowering your payments and possibly getting a better interest rate as well. It's worth a try.

So far I'm into my 2nd payment on my new Honda Accord SE and I've been paying an extra $200 a month in hopes to reducing the term from 5 years to 3 years. After paying off my car loan in 3 years I'm sure my credit score will jump at least 50 points ... this is also assuming I don't apply for any new cc's, close 2-3 current cc's with zero balances and pay down my current balances and don't run them up again.

 

[Nocturnal]

Originally posted by: RossMAN
So you've made at least 12 payments on time so far, right?

I'd say you have a good chance at refi-ing it, lowering your payments and possibly getting a better interest rate as well. It's worth a try.

So far I'm into my 2nd payment on my new Honda Accord SE and I've been paying an extra $200 a month in hopes to reducing the term from 5 years to 3 years. After paying off my car loan in 3 years I'm sure my credit score will jump at least 50 points ... this is also assuming I don't apply for any new cc's, close 2-3 current cc's with zero balances and pay down my current balances and don't run them up again.

hey rossman. i didnt update you with the good news. my girlfriend and her co signer was denied at the bank we went to. we ended up trying at a credit union on our own and we got $3200.00 personal loan.

its a 3 year loan with 10% APR. we should pay it back within 1 1/2 years to 2 years being the max!

i know its a high apr, but i know we can cut that down by paying it back more each month.

our monthly payment is $108.00.

thanks rossman

and sorry ed for hi jacking your thread.

ps, the loan is in mine and her name. which means this will help my credit score, yay!

of course only if we do make the payments in a timely manner and no late payments.

as well as not applying for any credit or anything like that.

thanks for the advice again rossman!

 

[phatcow]

actually the reason why im curious of the fico score , is after my 3 -4 years is up, i plan on getting a loan for a 35k car, along with a house. It is highly perferable to get the prime rate for obvious reasons.


im currently piggybacking off my dad's perfect credit... i dont want a cosigner in 3 years, but i want a prime rate either way

my refinancing escapades is because i made the mistake of financing through the car dealership wiht a local bank.

 

[RossMAN]

Nocturnal - Congrats and that's great news, I'm glad to hear it. It's also terrific that your name and social security number are on the loan as well. If you two do the smart thing and make your payments on time it should definitely help your credit score for the better. Definitely pay more than the minimum $108, here's a cool calculator you can use to play around with some numbers.

If you were to pay $108 a month for 3 years = $3,888 total payments - $3,200 amount borrowed = $688 interest paid

However if you were to add an extra $50 a month that would reduce your term from 3 years down to 2 years. So $158 x 2 years = $3,792 - $3,200 = $592 interest - $688 interest = $96 interest you saved!