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Core
LSU Fan
Houston
Member since Feb 2009
16 posts

Truck Payoff Question

Here is a little background to the situation. Sorry if its a little too long.

I bought a new truck a year and five months ago at 8.49% interest. I obviously didn't have good credit then but needed the truck for work. I paid the monthly note for the first year and built a 6 month emergency fund while getting enough in my 401K to get my full company match. The last 5 months I've taken strides to pay it off quickly. I now only owe 2,500 on it and saved thousands of dollars in interest over the life of the loan. I can pay off the loan in full right now without hurting my emergency fund.

Should I wait to pay off the last 2,500, break it up into small monthly payments or pay it off now? If I wait to pay it off, how long should I wait? I'm only curious because the only negative part of my credit score is the average age of credit lines. I'm worried if I pay it off now I might lose out.

Thanks for the information.


TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
25173 posts

re: Truck Payoff Question
Why do you want good credit?


Is it so you can get a better interest rate & save money? If so another way to do it, pay off your truck & save the money you would be paying in interest.


BACONisMEATcandy
LSU Fan
Delta, Amex, & Über Threads
Member since Dec 2007
43107 posts

re: Truck Payoff Question
With that rate I'd pay it off now


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Core
LSU Fan
Houston
Member since Feb 2009
16 posts

re: Truck Payoff Question
Will be buying a house in the next year or so. Only reason I'd want to build as much credit as possible.


TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
25173 posts

re: Truck Payoff Question
quote:

Will be buying a house in the next year or so.


Save as much $$$ so you can put 20% down


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