credit score

[etech0]

What is the benefit to doing it this way?

I'm wondering the same

[meme]

I have a car loan that's almost paid up. I would like to pay off full amount instead of waiting for it to auto payoff with monthly payment. Does it make a difference on my CS if I pay up early (by a few weeks) vs letting it pay off with the regular payments?

[PETERP]

What is the benefit to doing it this way?

 You will always have a record of all the credit cards etc. you paid in one place, and will never have to remember card numbers etc .if you originate payment from your source .

[PillanSmye]

You will always have a record of all the credit cards etc. you paid in one place, and will never have to remember card numbers etc .if you originate payment from your source .

Pretty much how I look at it.

Open my checking account, check for fraud.

Then start going through every credit card in a different browser screen, again checking for fraudulent charges.

Set up bill pays.  Have a total to compare against available balance.

Plus this way I can push payments against pending transactions that have yet to post if I want to.

[PillanSmye]

Hope I understood correctly. If all my other cards close without a balance, then $400 on the one is fine?

it's fine to do whatever you want.  The $2 trick maximizes FICO and is just a good habit to get into.

While you try to strategically plan AOR's, I like to also be opportunistic.  Such as, if a Citi AA Exec 100K offer appeared tomorrow, or a Ritz 140K offer, I want to jump on it and get the best approval chance/starting limit possible.

[Zalc]

Set up bill pays.  Have a total to compare  this way I can push payments against pending transactions that have yet to post if I want to.

Oh cool, didn't think about that. Thanks!

[newdealseeker]

The $2 trick maximizes FICO and is just a good habit to get into.

Which thread is best to read more details about the $2 trick?

[Emkay]

Which thread is best to read more details about the $2 trick?

There is a dedicated thread for it

[PillanSmye]

I have a car loan that's almost paid up. I would like to pay off full amount instead of waiting for it to auto payoff with monthly payment. Does it make a difference on my CS if I pay up early (by a few weeks) vs letting it pay off with the regular payments?

Doesnt matter.  Your credit score will most likely fall for a couple months after the loan is paid and closed. 

[meme]

Doesnt matter.  Your credit score will most likely fall for a couple months after the loan is paid and closed.

any way to avoid that?

[ya]

any reason to clean up your innovis report?

[PillanSmye]

any reason to clean up your innovis report?

Freeze it. Do ARS and IDA while you are at it.

I believe you should also clean them up though.  No need to have deragatory stuff on your reports since your existing creditors can still access frozen files, although I'm not sure if these 2nd tier CRA's get softed with regularity or not.

[PillanSmye]

any way to avoid that?

Nope, just how the system works.

[ya]

Freeze it. Do ARS and IDA while you are at it.

I believe you should also clean them up though.  No need to have deragatory stuff on your reports since your existing creditors can still access frozen files, although I'm not sure if these 2nd tier CRA's get softed with regularity or not.

Will they pull it for a mortgage?

[Venilla]

Nope, just how the system works.

What's the reason? I always thought it's better to have paid off loans than open ones, is that not true?

[David Smith]

What's the reason? I always thought it's better to have paid off loans than open ones, is that not true?

Once it's paid off, you lose the installment loan history.

[Venilla]

Once it's paid off, you lose the installment loan history.

I guess it's not staying on the report for 10 years like a closed CC?

[PillanSmye]

What's the reason? I always thought it's better to have paid off loans than open ones, is that not true?

FICO gives a little boost when you have installment loans 90% paid.

Lots of this stuff isn't necessarily exact also.  The effects different things have on people depends on their individual files, how clean they are, oldest accounts, AAoA, new accounts, INQ's etc etc.

[PillanSmye]

I guess it's not staying on the report for 10 years like a closed CC?

Technically, closed accounts stay on your reports for 10 years.

There is no law that says they must stay.  So they can go early. 

And no one obviously complains if an old positive account is on their file since it usually helps them.

[PillanSmye]

It just the way it is.  Just like you get a little FICO boost for having one revolving credit card with a $2 balance.  Having an installment loan with 90% of the principal paid gives you a little boost.

But no one should get an installment loan just for FICO benefits.