Car Pay Off Question

[kymgirly]

I am paying my car off next month (whoot whoot) will that give my credit score a boost?

[MSbklawyer]

I am paying my car off next month (whoot whoot) will that give my credit score a boost?

Your debt to income ratio is one aspect of the credit score calculus, so yes, it should help some.

But you realize, don't you, that once you get it paid off that your bank will send out a satellite signal that will activate the car's paid off car malfunction inducer chip that will cause all sorts of things to start going wrong with the car that will cost you more to keep repaired than a payment on a new car would be?

What? Did you think they were going to let you get ahead?

[kymgirly]

I'm driving Pete into the ground while I save money for something nicer.

[IBroke]

Your debt to income ratio is one aspect of the credit score calculus.

Sorry, but that's incorrect. First of all, an auto-loan is not a revolving debt so there is no ratio for such a loan (installment-loans).
In addition, your income is not considered by credit score calculations. It isn't even part of your credit-report.

It's difficult to tell what the effect is going to be. If it's your only installment-loan, your score might even go down. If you have additional installment-loans, your score might improve because you have one account less with a balance on it.

[kymgirly]

I'm tired of credit, too many freakin rules. I don't want any more installment payments I want to be debt free! My student loans are the next beast to attack.

[Logan]

I'm tired of credit, too many freakin rules. I don't want any more installment payments I want to be debt free! My student loans are the next beast to attack.

Kym,

Don't worry about your credit score. Just clean up your credit report, get a credit card or 2 that you payoff every month, pay your bills on time and do your best to pay NO interest or fees on any credit and you're credit will do just fine.

Logan

[kymgirly]

I have been doing that! Thanks Logan.