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> $500 student loan, pay it off or not?
eonaxes
post Jun 19 2009, 05:15 PM
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I have a $500 loan that I can pay off with 0 interest before a specific date. I can easily do this. However I'm curious how much better of a credit score and/or loan payment history it will give me if I eat up the 5% interest and just make the scheduled quarterly payments.
Also does good a student loan payment history help out with auto loan apps?
I have no installment credit history and need what ever would help when I become a first-time car buyer.
Thank You
 
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Googie
post Jun 19 2009, 05:15 PM
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BButrell
post Jul 29 2009, 09:48 PM
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Good question. ttt


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Gaddi
post Jul 30 2009, 10:39 AM
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QUOTE (eonaxes @ Jun 19 2009, 06:15 PM) *
I have a $500 loan that I can pay off with 0 interest before a specific date. I can easily do this. However I'm curious how much better of a credit score and/or loan payment history it will give me if I eat up the 5% interest and just make the scheduled quarterly payments.

The whole point of having a good credit score is to get lower interest rate. You are trying to do it backwards. You should do what is good for you economically/financially not what is good for your credit score.

QUOTE (eonaxes @ Jun 19 2009, 06:15 PM) *
Also does good a student loan payment history help out with auto loan apps?
I have no installment credit history and need what ever would help when I become a first-time car buyer.

I asked this questions yesterday in auto forum. MarvBear said student loans DO NOT qualify as an installment loan for purpose of buying a car. The thread is here http://creditboards.com/forums/index.php?showtopic=404410
 
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