Should I pay off my personal loan early?

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Dylan1982
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Should I pay off my personal loan early?

Postby Dylan1982 » Mon Jul 02, 2012 5:37 pm

I had to take out a personal loan last week wednesday for $1,500, it is a 24 month term loan.

Here's my question. I now came across funds and have enough money to pay off my 10 day old loan in FULL already. Should I make some payments on the acct to show some history? Should I just pay it off in full, like NOW??

What will it do to my credit if I pay it off WAY EARLY??

Thanks guys..
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
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Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
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FastSRT8
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Postby FastSRT8 » Mon Jul 02, 2012 8:41 pm

Dylan,

IMO, I would not pay it all off in 10 days. That may look funny to some. What I would do is pay it off in 6 months. Make it appear like you have earned and paid it off. May as well use the situation to build some positive credit history.
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Dylan1982
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Postby Dylan1982 » Mon Jul 02, 2012 8:55 pm

FastSRT8 wrote:Dylan,

IMO, I would not pay it all off in 10 days. That may look funny to some. What I would do is pay it off in 6 months. Make it appear like you have earned and paid it off. May as well use the situation to build some positive credit history.

The loan is through my local CU, so I have positive history with them. I was thinking of doing the same paying it off in 6 mos, too bad it will accrue intrest...

What should I pay each month to the loan? The amt due each month is $71.xx dollars....
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)

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PlatinumAMEX94
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Postby PlatinumAMEX94 » Tue Jul 03, 2012 9:36 am

Dylan1982 wrote:The loan is through my local CU, so I have positive history with them. I was thinking of doing the same paying it off in 6 mos, too bad it will accrue intrest...

What should I pay each month to the loan? The amt due each month is $71.xx dollars....


Take the amount of the loan and divide by 6.
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Dylan1982
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Postby Dylan1982 » Tue Jul 03, 2012 10:05 am

PlatinumAMEX94 wrote:Take the amount of the loan and divide by 6.

Sounds good. But again will it look bad on my credit if I pay it off in 6 mos. rather than the 24 mos?
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)

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FastSRT8
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Postby FastSRT8 » Tue Jul 03, 2012 11:33 am

No.... 6 months is OK.
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DavidNY
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Postby DavidNY » Tue Jul 03, 2012 2:37 pm

I'd pay it off and pocket the interest.

Ratfacedudeguy
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Postby Ratfacedudeguy » Tue Jul 03, 2012 2:59 pm

DavidNY wrote:I'd pay it off and pocket the interest.


+1 on that one.
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FastSRT8
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Postby FastSRT8 » Tue Jul 03, 2012 6:46 pm

Yes, but the interest is so low at the moment and the principal is small. I would be more worried about the perception of opening a line and closing it right away. May be frowned upon.
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Dylan1982
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Postby Dylan1982 » Tue Jul 03, 2012 7:18 pm

FastSRT8 wrote:Yes, but the interest is so low at the moment and the principal is small. I would be more worried about the perception of opening a line and closing it right away. May be frowned upon.

That I'd exactly my train of thought. Opening it up, then paying it off in full like 2 weeks later
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)



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