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Nope. Entirely possible to be right at or near 800 (but not 850) on nothing other than a handful of paid-in-full revolving lines, provided your utilization is relatively low and your time-on-accounts is relatively high. It is, however, nearly impossible to get the last 20 or so FICO points unless you've got mid-to-long term debt (mortgage, car loan, etc) that is being serviced. I float between 790-820 and have for years without a single long-term note outstanding -- haven't even had a car loan for close to the last 20 years (and no mortgage either.) All there is in current lines on my report is a couple of revolving lines.

Paying interest in a bid to try to up your FICO is sheer lunacy. That last 50 points is literally worth nothing when it comes to the cost and availability of credit.

What you do want to pay attention to are (1) hard inquiries, which result when you open a new line and (2) revolving credit utilization. A series of hard inquiries for the same product (e.g. 3 different mortgage lenders) at the same time will only be counted as one by the FICO algorithm, but multiple "types" of hard pulls can get you in score trouble. What will also reliably take 20-30 points off your score immediately is an outlying month of high utilization (e.g. you're running 10-15% and then suddenly spike to 30 or 40); if you immediately pay it off (e.g. you paid no interest) the next month your score will go right back where it was. Beware, however, if you do that and combine it with a hard pull for some other form of credit; that's a BIG red flag that you're under significant financial stress. It's a very bad idea to do something like that if you expect to want to refinance a mortgage or buy a house in the next few months as you can easily cost yourself half a percent on your interest rate that way or even cause a denial.
 

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If you can pay it in full, it is reasonable to do this rather than keep financing. I had taken a car loan and was clearly explained this thing. The entire process was super simple. They were able to lock in my rate, at almost a 1% lower than my local credit union could. I loved being able to see my rate without a hard pull and once I decided to go forward it was fast and easy. I worked with MoneyExpert.com and I'm very happy with the process and savings! They helped answer a few questions and followed up with along the way at a high level, by the way, this is worth turning for this to them.
 

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Not enough attention is placed on the interest rate in this discussion. My car loans are at 1.9%. While I am making double payments, there is not much advantage to paying them off.

Don’t pay off a low interest rate loan if you don’t have a large emergency reserve.
 

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The question, assuming sufficient reserves, is ALWAYS simple: "What would you do with the money that will RELIABLY earn more than the interest cost?"

Remember the interest cost is certain. Anything you might "make" (e.g. in the stock market) is NOT certain. The stock market goes up 70% of the time, on average, but when it goes down it tends to go down at twice the rate or more of when it goes up. You cannot predict when the change will happen with any sort of reliability over more than a couple of month's time, so if you have a longer term note you're taking a significant risk. If you're expect to make 10%, and the note is at 2%, that's a decent gamble even given this risk. But if you expect to make 4, well, not so much because the expected 4% could be -10%, and now you're GREATLY in the hole.

Also remember one other thing about investments: A 50% loss sounds horrible. It's actually much worse than it sounds because you need a 100% gain (!!!) to get it back.
 

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It is always better to pay up your car loan as early as possible. Since `you have a fair credit score, there isn't a problem. However, if you have a bad credit, it is wise to refinance your car loan.

You can see the benefits of refinancing on this blog. Can I Refinance a Car with Bad Credit?hyperlend. It is up to you to take a decision. Looking at your credit score, I would have paid off the loan.
Hi Silver Light

“Useful post” Thank You!!, I want to know more about this, I want to take a loan from an online bank with an interest rate of about 5%. They can give me aprox $18,000 and that's enough for all my expenses. So don't deny yourself anything, man.
 
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