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Truck Payoff Question

Posted on 3/25/13 at 5:55 pm
Posted by Core
Houston
Member since Feb 2009
18 posts
Posted on 3/25/13 at 5:55 pm
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.
Posted by TigerintheNO
New Orleans
Member since Jan 2004
41146 posts
Posted on 3/25/13 at 6:36 pm to
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.
Posted by BACONisMEATcandy
Member since Dec 2007
46643 posts
Posted on 3/25/13 at 6:39 pm to
With that rate I'd pay it off now
Posted by Core
Houston
Member since Feb 2009
18 posts
Posted on 3/25/13 at 7:07 pm to
Will be buying a house in the next year or so. Only reason I'd want to build as much credit as possible.
Posted by TigerintheNO
New Orleans
Member since Jan 2004
41146 posts
Posted on 3/25/13 at 7:22 pm to
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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