Why paying off your loan is bad for your credit

Recently, a friend of mine asked me if he should pay off his auto loan he had acquired years ago. While the interest rate on the loan is very low, less than 3%, he wanted to be free of debt and felt tempted to finish making monthly payments for the loan. He makes good income and is very disciplined about expenses, so paying the remaining balance would not cause any financial burden to him, and neither would maintain the monthly payments. His main concern was the impact on his credit.

I talked him out of it.

My friend should not pay off his auto loan early.

Continue reading Why paying off your loan is bad for your credit

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How I achieved 760 FICO credit score in just over 2 years

How I achieved 760 FICO credit score in just over 2 years

My credit journey has now lasted for 2 years and 10 months, and I’m in the mood for reflecting on the journey thus far. I did a lot of research about credit along the way, especially in the first year, to make sure I could achieve the most, credit-wise, in the shortest amount of time. And at this moment, I am about exactly where I wanted to be, and in just about the best position there could be for someone with 2 years and 10 months of credit history.

760 FICO credit score has long been considered a hallmark of excellent credit, and I hit it about 3 months ago.

FICO score 767
From MyFICO Score Watch

Continue reading How I achieved 760 FICO credit score in just over 2 years