Is it too early to pay off my auto loan?

I purchased a truck back on June 15th. I bought it for like 13000. I put 3500 down at the time of purchase. I am thinking about paying it off but I am really just trying to build my credit. Would it be better to keep the payments or to pay it off My credit is only 650 I am 20 years old and have no other auto loans at all. I am thinking about payinf it off to but another vehicle so keep that in mind!! Thanks!!

Is it too early to pay off my auto loan?
If you have the money to pay it off, just pay it off and be done with it, it'll definitely be good for your credit if you can show that you pay your debts.


Right now there's lots of cars going for cheap as 60% of population can't pay for it!



Reply:You are better off to keep paying on it. Lenders look for payment patterns regardless of what some of the other responders are saying. Paying off a loan quickly does not establish a pattern so they are less likely to lend. If you want both vehicles use your cash as a large down payment on the second vehicle. If you only want one, trade in the one you own and use the cash you were going to use to pay it off as additional down payment. Depending on the value of your trade in, you might come out better.
Reply:It would do your score good to pay off your loan in full. I didn't understand what you were saying about buying another car. If you ARE going to buy another car, are you going to trade your truck in? Are you keeping your truck and buying a car? Are you going to pay off your car but get a loan for a car?


Let's say it is the latter, you want to pay off your truck but get a loan for a car. That would hurt your credit because getting too many loans to fast is bad for your score. It would be much better to take your cash and buy a car and keep your truck payments. If you have money left over, you can apply that money towards your truck loan.
Reply:From a strictly credit standpoint, you would be better off sticking to your original payment scheme. With a score of 650 and having paid in full a loan to assume another loan, will not go in your favor and will call an investigation into why your score is only 650. Lenders are on alert to spot innovative borrowers.
Reply:The best thing you can do for your credit is buy something and pay it off right away.


It is a myth that carrying a loan builds credit.


Total myth.


Get 3 credit cards, get high limits, and pay them off in full each month.
Reply:Try getting a free online auto loan quote. http://www.autoadviceonline.com/Auto-Loa... The automated form will let you know if you can be approved. It will only take a few minutes.