littlemallory2001 asked:


My husband just bought a motorcycle, our payments are 450. if I pay 600 a month, by the end of the year we will be 750 ahead on payments, I know this will take a huge chunk out of intrest and help us pay it off way faster, but will his credit score increase at a quicker rate than regular payments?

Nathan

5 Responses to “Will paying extra on a loan improve your credit score faster?”

1. Vadalia on May 20th, 2009 5:27 am

   Jamie

   Unfortunately, no. The only thing that will be looked at is that you made all your payments in full and on time. However, when you pay the extra $150, make sure that you specify that it should go towards the principal because some companies will just apply it towards your next regular payment if you don’t (and you’ll lose the interest benefits of paying extra)

2. Bunker buster on May 23rd, 2009 11:40 am

   Lois

   That’s what I heard. Its tantamount to paying earlier before due date it does improve your credit rating. But to be sure you can always inquire with the financing company.

3. frank y on May 24th, 2009 9:19 pm

   Angela

   no, you just need to pay on time

4. Quickspic on May 26th, 2009 5:15 am

   Javier

   Yes, it will but by a very small amount.

   Part of your credit score is based on percentage of use.
   This means if you have a credit card or any line of credit and you are using near the max amount it will lower your score.

   Your score is also based on how long you have had the account and your last request of credit. This means the longer you wait with out requesting more credit it will also creep up.

5. Erica on May 27th, 2009 2:33 pm

   Lillian

   …

   Kindly Plz Take A Look @ This : = ” The 90 Second Guide to Improving Your Credit Score Fast ”

   …

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