Overhaulin'

Is it good for credit if you buy a car and have the cash to pay it off but take loan and pay it off instantly?

I bought a car and payed off the loan so quickly that when I purchased my next vehicle, they didn't see that I had a loan previously.

Public Comments

1. You'll need to make a few payments over 3-6 months in order for them to establish a payment history on you, which is what is reported to the credit bureau.
2. banks look for a 12 month installment history -
3. For it to make an impact on your credit report, you need to show a 12 month payment history on the installment loan for the auto.
4. It's better to take the credit offered, make about two payments and pay it off. That gives them time to report it to the credit bureaus then it is reported as paid promptly. The last car I financed we put $3,000 down and made 6 payments and then paid it off. They loved me. Read how credit works on this site http://www.1-800BadCredit.com