Friday, September 28, 2007

Paying off a loan?

Paying off a loan?

So my question is, if you want to pay off a loan early, is there a certain amount of time you have to maintain a loan until it affects your credit rating, score.
If you pay it off in one month or after 2 years, does it matter?

The Answer : You need to have a payment history of 6 months. That will establish your credit line for that loan. Then pay it off.By doing this regularly, you quickly establish sever credit lines and the beginning of a credit history.
I've recommended people take out a small loan (appliance, tv, whatever), make payments for 6 months, then pay it off. It will do wonders for your score.

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