Should I pay off my auto loan?
I bought a car and took out an auto loan for part of it (did not really need to take out the auto loan).
My rationale for taking out a loan when I could have paid straight cash is because sooner or latter I will want to take out a mortgage and at the current moment I have ZERO loan history.
I make a good income for a single person (over 100k), have paid my credit cards off in full every single time before the "due date", and pay all my bills on time. Just worried when I ask for a mortgage (in my current area the mortgage will be between 300-600k or so) I will get a "bad" rate since I have no history of owing any significant amount of money.
But then I found I HATE paying interest when I have the $$$ in my pocket. With the current auto loan (started as 24 months) I quickly paid it down so if I pay and monthly payment the rest of the term (22 months) it will be a nominal amount ($100 a month).
Would it make much difference with my credit score/rate on future mortgage if I
a.) Pay off the remaining amount (lets just say 2k) tomorrow
b.) Pay $100 a month for the next 22 months.
Insurance is NOT a concern in this case (ie I would have full coverage whether I had the auto loan or the car was paid off for at least the first 2 years).