Question: By paying off the car now, I can save about $1500 on interest in the >long term. That was the main reason. But I was wondering that if I >paid the car off, my credit rating would slowly begin to go down >because I would no longer have “major credit” on my more recent >record.
>I do use 2 credit cards periodically… I use it for misc expenses and >pay them at the end of the month.
Answer: That was pretty much our situation; we used credit cards which we paid off every month and aside from that, the only debt we’d every had was student loans, which we’d immediately paid in full when they came due, a number of years ago. Both of our scores were extremely good and we had no trouble getting a home loan at a good rate. I’d pay off the car.
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