I went through a bankruptcy in 2005, but have had 3 seperate car loans through my credit union since that time. They have been so helpful, and I am grateful for them. My % rates went from 16% to 8% on the current one ($ 12,500/4 years). The previous two were for $ 3-5k, and I paid them off in full when I sold the cars.
Here is the question-I didn’t keep either loan for more than a year, and they said that it didn’t affect my credit score greatly because of that reason. If I had kept the loan running for over a year, it would have been better. Now, my current loan started last July, and I would like to drop the $ 300 monthly payment and drive something cheaper for now. How much will this really affect my credit score? If I keep the loan just over a year and sell the car to pay off the loan, won’t my debt-income ratio be much better than if I had the open loan?