How long should i keep my car under my credit?

Question

I got my car out for 4 years which is a really long time, but i can finish paying it off in about 12 months ( i have 9 months). A guy a work told me in order to get good car (loan) credit you have to at least have the car under your credit for 18 months. is this true? I want to purchase a new car in about july (2009) but i don't know if i should hurry pay it off by 12 months or 18 months. What should i do?

Answer 1

Pay it off early if you can.

12 months is plenty enough to establish a good payment record.

Anyways, it's always good to have $0 debt over a long payment record.

Also you want the payoff to be recorded on your credit so you can get a good rate, which will take a couple of months after your final payment. So you'll want to take care of it months prior to buying another car.

Answer 2

just depends on your loan rate if its high pay it off if its low keep it until you trade the car in