I pay off all my debt early and it does NOTHING but help my score…. I’m one of those ocd ppl that are constantly looking at their score every 20 mins on the Experian app and I’ll tell you that it doesn’t hurt your score to pay off early…it’s a myth….. he probably got paid by certain companies to make this video lmao so they can hit ppl with more interest
I just paid off my credit card debt and a small loan (>7500). I'd rather have zero debt and a poor credit score than huge debt and an average credit score.
Just an update... My score shot up over 100 points because I paid everything off. It took a month to show up, but a lot better than carrying a debt for another month.
At 34 years old I finally feel ready to settle down long enough to buy a house. Unfortunately due to previous horrible stupid life decisions, I'm forced to start with a zero balance in my savings account. On the bright side, the huge amount of debt - consequence of those bad decisions will be payed off next month! 🥳 It's never too late to start saving like there's no tomorrow, and I'm really REALLY excited and motivated. Oh and Graham, fyi my emergency fund is also a done deal! by This name below team lol, i didn't made it myself
Great video! I paid off my house and debts and my score when down 100 points. But having a paid off home is worth every penny. Just subbed to your channel!
I paid off my student loans and my car early. My credit is now 790, it’s a temporary ding but will rebound quickly so I say go ahead and pay off those loans early and don’t worry so much about your credit score bc as long as you continue with good financial habits your score will rebound and go even higher
Did it rebound without you taking out a new installment loan after or having any other existing installment loan active? And how quickly did it rebound by itself? Thanks in advance!
I have 2 chapter 13’s that are dismissed. The reason I have 2 is bcz I did n+ot use an attorney. I was trying to stop an eviction, but when I went to try to add another month’s rent to the bankruptcy, but the guy filed another one. About a month later, I ended up losing my job. They are scheduled to fall off in January and March 2021. Since I’m looking to purchase a home soon but still there. I am currently enrolled in This name below and I must say, I am loving it thus far. I’m doubling it up with your podcast videos and learning A LOT! Thank you. I’m ready to join the millionaire club!!!
VERY well done ! I say this with 40+ years in mortgage finance & banking working with credit bureaus. Different models and parameters are used by different industries but this name below info is pretty much universal. If you're trying to max your credit scores, there is a happy medium between too many credit cards and none. Too many cards with zero balnce may actually hurt you in some cases. Even if you do not use them, you have a potential. To always pay cash & still have cards doesn't help your scores as well
the short term affects of your credit score dropping is never going to be worse than not being in debt. Pay off your loans early. They never talk about the positives. If all you care about is a credit score don't pay it off. But if you want to live a life, not worry about your next payment constantly, feel more free and in more control and actually own what you paid for, just pay everything off. Money isn't complicated.
I just paid my last student loan this week for 14300 to finally be debt free. My current score is over 800 so I will take the ding. I’m going to save more now for my future house. So future debt will come but for a while I can breathe debt free 😁
@@Iammarlonbrown payed my personal loan off (not early) and my credit went up to 810 from 780. I also have a student loan and truck loan open as well atm. I’d rather invest my extra money and keep a consistent payment. Works for me anyways hope that helps you!
Bother - may I suggest you make This below name correlating this to the Chinese Credit Scoring System; you know, the system where an entire nation's people are enslaved by their government over systems exactly like this? We need people who have influence to bring to light these types of correlations to get people asking and thinking or we will see ourselves slip into a tyrannical nightmare
I went the full 6 years with my auto loan. Finally reached the payoff date and my score dropped 54 points from that account being paid in full. I did not pay it off early . It sucks
That is why you get a credit card, lock it in the bank portal, and forget about it. Use another CC for perks which could require a different card frequently to get better perks. As that locked card account ages, you will get credit for average account age. You can't just get a CC and not use it which is where the second CC comes in.
Ok ill keep paying interest and losing money.. and Ill get different kinds of debt cuz credit score likes that.. few car loans a student loan handul of credit cards a mortgage ... yess I will swim in debt and pay thousands in interest so I get a nice big credit score yayy!!
So true, it is a bit backwards from our perspective. It took me a long time to get how credit scores are more about whether we're a good investment for the bank than our actual good or bad financial habits.
I bought a new car and got a $2,000 rebate to finance. I paid 90% of the loan balance the first month. Then I merely paid $100 per month until it was paid off. Saved a bunch of interest, got a rebate and added to my positive credit history. Car dealers will often give you a better price if you finance through them and most loans do not have a prepayment penalty. There is no advantage to pay cash.
So…one year later would you rather still have that debt?? Lol..I’m sure your score went back to over the past 12 months and now you have no school loan debt…this was dumb
I never thought about that… Here I was trying to pay my car off as fast as possible (literally every spare penny) but inflation is at 6% my interest-rate on my car is 2% so thinking about it and throwing money away paying it off early so thanks for pointing that out.
Well damn , this what I need to know about!!! I was gonna pay off my auto ….glad I tune in on time just couple of hour late…Thank you for this great information u make my days 🥰🥰🥰..👍👍👍
Yea Navy federal gave me a really high limit. I applied and was denied at first so I got a service from this name below, and I was approved for a capital one. The limit was so small lol but I took it and worked on it. Because if that it helped my credit and I believe that’s what made me finally get approved for navy fed with such a high limit. they're still working on increasing the capital one since it was so low. All in all I’m satisfied.
One thing i can say is i took a loan higher than the consolidation of my credit card and my score jumped 50. So it depends on the reason for the loan as well
@@gogurletc8170 FICO is a scam, it is a system designed to keep you in debt, you become a slave to FICO chasing that high FICO score. You are better off paying off your debts and saving money. People don't realize just how much money they pay out in interest that they instead could have been putting into their own bank accounts.
I’m planning on getting a new motorcycle with a loan amount of $7500 after putting $2,000 down. It’s for 72 months so my payments will only be $132. I owe the same amount left on my truck but the monthly payment is $420. So my plan is to open the new loan and pay off the other to help my debt to income ratio while also keeping my loan amounts and types the same. ( I have $20k in the bank currently )
Do you know if your credit score may still take a hit because the loan of your truck (although paid off/ now closed) was much larger than the loan of your motorcycle (new installment loan)? In other words do they care you closed a huge loan? Or so long as there are ongoing installment loans regardless of amount, your score will not drop?
You know you are paying $2,004 dollars in interest for that long term loan, Pay off the $7,500 dollars as fast as you can and pocket the interest into your own account. You are doing exactly what FICO was designed to do, keep you in debt because you are worried about FICO score. FICO is a scam designed to keep you in debt.
As of right now since I am young and credit is around high 600 low 700s I choose to continue building my credit later down the road will forsure want to be debt free
got it. so ima gonna pay my truck down to owing $50 remaining, but then pay off ALL of my credit card debt to $0 balances. thanks for telling me this i plan you apply for a home at the end of this october
Mine was 9.9% interest and only had 4k left on a 10k loan. Didn’t wanna keep paying interest on something I can get rid of and also it raised my credit enough over the 3 years I think I’m good
I think it's good advise, I read threw the comments to see other peoples opinions...Most opted to pay off their debt immediately and settel for poor credit rather then a better score and while that advise might be good for say. And 85 year old whom will most likely not need any future financing for house repairs for flooding, fire, tornados, vandalisum, a morgage?...a new or used vehicle....The fact remains our lives are always changing and we are always looking to improve it...So you paid your loan off your debt free but find that you now pay an 8.5% interest rate on everything from fuel, to food, to clothing....You may in fact find yourself needing another personal loan soon to make up for the cost of living increase your raise doesnt make up for...but wait it gets better...now you have a poor credit score...So you have to take peoples advise with a gain of salt....It may not apply to you and making a small monthly payment may actually turn out to benifit you later...or maybe the unlikely will happen and the Fed will drop interest rates to a zero interest rate 0% for another 10 years dispite the massive 200 Billion dollars they owe....🤣-When Pigs fly....good Luck with that Loan application kidz.
LOL, yeah right, try to get a loan after a natural disaster has hit your area. We went through Hurricane Ian we have insurance but to get things moving quicker we were going to take out a home equity loan, our home only suffered some shingle damage and we lost some dry wall from the porch ceiling. Our home is paid off free and clear. Our bank even sent out emails saying they were there to help, but when you tried to get a loan they laughed in your face and not banks were making loans. We ended up getting the insurance checks and used our own money to cover the 2% deductible which was $5,900 dollars and upgraded to a metal roof and paid the price difference over a shingle roof. But if you think you will get a loan after a natural disaster hits even if you have minimal damage you are dreaming, you will be on your own. FICO is a scam to keep you in debt. Do yourself a favor pay off your loans and save money instead, you don't want to become a slave to FICO chasing their corrupt scoring system.
This video have myself in mind. I have currently 2 student loans. It was said September 30th of this year student loan repayments starts. But reading a few articles about student loans, they have been pushed back again January 31rst 🤔. Either way I'm going 2 pay mine off 💯. So I can have less debt in my name. In regards 2 getting a 🏡 in the near present The last installment loan I had from my credit union. Their wasn't a penalty to pay early 🤝
@@barbarap.bishop195 absolutely. However, the credit bureau’s will annotate in the remarks on your file that “account being managed by debt management company”. THAT is what they don’t tell you. And THAT can sway the judgment of creditors. What is being shared in this video is the way someone is truly assisting the individual to get it right.
I’m aiming towards applying for a home loan in 2023. With at least 40k saved towards the home. I just approved for a personal loan of 7k to consolidate my debt. Which I used 4k to pay off all my revolving accounts. Would it make sense to take 1000 and use it towards the personal loan? There’s no prepayment penalty. Thanks guys
Okay, so I have a 5 year personal loan, I have been paying it since 2018, my balance is 1,000 now. My goal was once I hit 500 to pay it off completely!! So you are saying keep paying the balance till it's done, so my credit score won't go down?
@@mr.cardris You got lucky then, do you have another loan of some type and do yo have credit cards. If you have no type of debt it is hard to believe that you have a high FICO score. FICO is all based off of installment loans and revolving loans, you become a slave to FICO chasing that high credit score and to do that you have to have credit on the books. When we paid off our mortgage our FICO score dropped, when we paid off one car loan our FICO score dropped when we paid off the second car loan our FICO score dropped.
I just paid off my motorcycle loan and it didn’t change my credit score, probably because I still have a car loan. I think I will pay off my car 1.5 yrs early even if it drops my score, I’d much rather have zero debt. I already have a mortgage anyways and of course I will of just paid off my car….so I wont be needing a loan any time soon anyways. My score is 771, even if it drops 15 points it’s still good enough.
We paid off our mortgage and our credit score dropped, we paid off a car and our credit score dropped, we paid off our other car and yep our credit score dropped. FICO is a scam designed to keep you in debt, you become a slave to FICO always chasing that high credit score which means you will end up having to have multiple types of loans going at once. You pay all that interest to others that if you just paid off the loans you could put that same money going to interest plus the principle amount into your own bank accounts instead.
Just finished paying off a car loan a couple months earlier then what it would have taken. Score dropped 30 points. I also just paid off a personal loan so I'm worried if that will drop it even more. Was in the 800's so it was a gut punch to see it drop that much.
I plan on paying off a car loan 1 year early. My score is in the 790s do you think my score will drop more than yours (30) because I’m paying off an entire year in advance? Or do you think the penalty is around (30-40) regardless of how early you close an installment loan.
FICO is a scam, it is a system designed to keep you in debt, you become a slave to FICO always chasing that high credit score which means you have to have multiple types of loans and means you are paying other people a lot of interest plus principle. Pay off the loans and put that interest and principle into your own bank accounts and before long you won't have to rely on taking out loans.
So if i pay off my auto loan which only has 6300 left on it ....will my credit score still go down if i have student loans still being payed off? And if I pay 90 % of my auto loan would the next payment be due the next month. I was a little confused on what you said.
I have a car loan from 2021 for 6 years. I've paid it down to $822 this month. I have 2 credit cards as well. I would like to buy a house next year. Is it best to see if I can stretch that $800 out for a year so my credit doesn't take a hit?
I have 2 car loans, two credit cards. I’m looking to get a personal loan that costs only a little more than one of the car loans per month and pay that loan off completely while also paying down both credit cards to 30% utilization or less. How much could this affect my credit score?
FICO is a scam, it is designed to keep you in debt, you become a slave to FICO always chasing that high credit score. You are pissing away your own money in interest every month, pay off your loans and put the interest and principle into your own bank accounts. Instead of making others rich you will be amazed at how fast your own bank accounts will grow when you are not paying your money to others every month.
How do you calculate the interest you’ll pay if paying off a loan early. I’m considering taking a loan but want to pay it off early due to high interest. Hypothetically if it was a 5k loan with 20% interest I’m curious how to calculate how much I’d actually pay in interest if I paid it off in 2 years vs 4
Go online and search a loan calculator you can put in your information and it will show you everything. FICO is a scam, it is designed to keep you in debt, you become a slave to FICO always chasing that high credit score.
If you took out a personal loan and decided to use 50% to pay down debt, does you putting the other 50% back towards the loan balance shortens the time to pay off the loan or just extends months out that you wouldn't have to pay
I was at over 700 credit score and then I lost my job and maxed my cards I can pay it off in a few months but I don't know if I pay it all of at once if it'll go bk up a lot or a little vs taking my time
So my score is 779 I just got a loan from Klarna for $5,600 0%( APR) I still have $1400 on my Amax if I was to pay off my Amax do you think my score will drop even tho I have a 0% (APR) rate on my loan?
Do you have the answer, I have the same question. Don’t think your score will drop if the loan from klarna isn’t truly considered an installment loan, regardless of APR.
does the same apply for business credit? vs personal credit? im starting a business. and i have liquid cash, im thinking about taking out a loan, just to pay it back before the fees apply. with the goal of building on my credit. not sure if doing this will set me back
I have 5 credit cards that are all paid to $0 each month religiously. I am a co-signer on a student loan that is paid on time. I have a $10K balance left on my vehicle and came into some cash and wanted to clear this for the next year and pocket the monthly. My Credit Score is 790 but can't seem to breach 800. Would paying off the vehicle alter my credit score or should I ride out the payments for the year. Once paid off , does THAT cause a change in my Credit Score too?
I know it is two years later but the advice would be pay off the loan and put the interest and principle into your own bank accounts. FICO is a scam designed to keep you in debt, you become a slave to FICO always chasing that high credit score.
FICO is a scam, it is designed to keep you in debt, you become a slave to FICO always chasing a high FICO score. Pay off your debt, instead of paying your money to others put that interest and principle into your own bank accounts and before you know it you will have a large amount of money in the bank. Stay disciplined and keep putting money into your accounts. Why give all your money to others who become rich off of it when you can save it and make a nice life for yourself.
I want to pay off a personal loan early and I still have a auto loan active and in good standing. I've got 100% on time payment history. Will it drop my score if I pay off the personal loan early? I've done this once before and if I remember correctly it increased my score a little.
Hello. I paid Down my loan and have about $40 left on it in principle for the next 36 months. But my payment amount that’s due hang updated? It’s still at $72+ a month. How can I fix this? Do I contact the credit bank to change my amount or what
Hi I wanted to ask u have made a vid about jobs that don’t require SSN and don’t need high school diploma? I want to help my brother because he didn’t have the opportunity to finish school and I want to help him out. Plz let me know this isn’t possible 😅
Help your brother get a GED and yes he will need a social security number, without a high school diploma or GED he will always end up with minimum wage jobs and even most of those will not be available to him.
I left $250 on my self credit builder secured card I really want to switch it to somewhere else or to another secure card I'm not saying that self is bad but I really want to change the secured card I don't want to pay any more interest fees like I said I do have $250 on the card that I'm not touching but instead of having self I would like another secured card or something. What do you think 🤔
That is because FICO is a scam, it is designed to keep you in debt, you become a slave to FICO always changing that high FICO score. Pay off your debts and save the interest and principle instead by putting it into your own bank accounts.
I've paid off numerous personal loans early (since they had no early payment fee) and it NEVER dropped my credit score. It did always INCREASE my credit score. So I just can't understand where Naam is getting this thought process. I mean, I've never seen it for myself when I pay my loans off early also, I can not STAND DAVE RAMSEY. That guy is a SCHMUCK
That is because you always have installment accounts and revolving accounts and no Dave Ramsey is not a schmuck, the schmuck's are those who stay in debt paying all that interest and principle to others, FICO is a scam designed to keep you in debt. Add up all your debt each month and instead of having to pay it to others put it in your own back account and after 12 months look at how much money you will have in your own accounts instead of paying it to others.
Pay off all your debt, FICO is a scam, it is designed to keep you in debt, you become a slave to FICO. Instead of paying others interest become debt free and put all that interest and principle into your own accounts. Why make others rich off your money when you can save it for yourself. Leasing cars is one of the worst expenses you can have, what happens if you have an event happen in your life and you can't afford to keep paying those lease payments? Say you have 4 months left but once that forth payment is made you just can't do another lease. Now compare that to if you purchased the vehicle instead and you had 4 months left you can scrape by and get those 4 payments made, now instead of being without transportation you have a paid off vehicle and you now have that payment of interest and principle back in your own account working for you.
Pay off all your debt, FICO is a scam, it is designed to keep you in debt. Instead of paying all that interest to others pay off the loans and put that interest plus the principle into your own bank accounts, why make other people rich when you can save the money and grow your own wealth. You will be surprised how fast your account will grow when you are not paying others the money you earn each month.
The Insurance company you promote on here. Ask to many personal and non of they business questions. It's about you and your car, if feel all they need. Not my education, my bank, etc. Just my name, license, info on my car. It's not like I'm getting coverage by them. Just checking prices.
A credit score is the bank's version of a slave chain! Don't be brainwashed and be a modern day slave by listening these UA-cam clowns. Carry zero debt and you will come out a winner in the long run! Remember, you're born debt free, keep it that way!
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Have you ever did a review on chime?
I’d rather pay off my loan early than worry about a dip in my credit score.
I pay off all my debt early and it does NOTHING but help my score…. I’m one of those ocd ppl that are constantly looking at their score every 20 mins on the Experian app and I’ll tell you that it doesn’t hurt your score to pay off early…it’s a myth….. he probably got paid by certain companies to make this video lmao so they can hit ppl with more interest
I just paid off my credit card debt and a small loan (>7500). I'd rather have zero debt and a poor credit score than huge debt and an average credit score.
Just an update... My score shot up over 100 points because I paid everything off. It took a month to show up, but a lot better than carrying a debt for another month.
I totally agree with you! Zero debt is the best.
Well said. I'm debt free besides my new car auto loan of of 7,693 out of 27,693 for a new 2022 Elantra.
I feel the same way, just paid off a 10,000 card that I had since 2009 and paid it off in 17 months, I am done with credit cards
Yeah see if you still say that when your asking for another loan and cant get one 😂😂
Screw credit. Pay it off. You don't need the loan. You need peace
Depends on what you’re trying to do
If you’re trying to leverage it your advice would be HIGHLY useless
At 34 years old I finally feel ready to settle down long enough to buy a house. Unfortunately due to previous horrible stupid life decisions, I'm forced to start with a zero balance in my savings account. On the bright side, the huge amount of debt - consequence of those bad decisions will be payed off next month! 🥳 It's never too late to start saving like there's no tomorrow, and I'm really REALLY excited and motivated. Oh and Graham, fyi my emergency fund is also a done deal! by This name below team lol, i didn't made it myself
It's been a year since your comment. Hope everything is going well for you.
Great video! I paid off my house and debts and my score when down 100 points. But having a paid off home is worth every penny. Just subbed to your channel!
I paid off my student loans and my car early. My credit is now 790, it’s a temporary ding but will rebound quickly so I say go ahead and pay off those loans early and don’t worry so much about your credit score bc as long as you continue with good financial habits your score will rebound and go even higher
Did it rebound without you taking out a new installment loan after or having any other existing installment loan active? And how quickly did it rebound by itself? Thanks in advance!
How long does it take?
I have 2 chapter 13’s that are dismissed. The reason I have 2 is bcz I did n+ot use an attorney. I was trying to stop an eviction, but when I went to try to add another month’s rent to the bankruptcy, but the guy filed another one. About a month later, I ended up losing my job. They are scheduled to fall off in January and March 2021. Since I’m looking to purchase a home soon but still there. I am currently enrolled in This name below and I must say, I am loving it thus far. I’m doubling it up with your podcast videos and learning A LOT! Thank you. I’m ready to join the millionaire club!!!
BAD KhenCorp⨀COM
How long it take to drop off
I'm not letting 3 credit agencies determine my choices
VERY well done ! I say this with 40+ years in mortgage finance & banking working with credit bureaus. Different models and parameters are used by different industries but this name below info is pretty much universal. If you're trying to max your credit scores, there is a happy medium between too many credit cards and none. Too many cards with zero balnce may actually hurt you in some cases. Even if you do not use them, you have a potential. To always pay cash & still have cards doesn't help your scores as well
BAD KhenCorp⨀COM
the short term affects of your credit score dropping is never going to be worse than not being in debt. Pay off your loans early. They never talk about the positives. If all you care about is a credit score don't pay it off. But if you want to live a life, not worry about your next payment constantly, feel more free and in more control and actually own what you paid for, just pay everything off. Money isn't complicated.
Amen 👍🏼🙏🏼
I just paid my last student loan this week for 14300 to finally be debt free. My current score is over 800 so I will take the ding. I’m going to save more now for my future house. So future debt will come but for a while I can breathe debt free 😁
How much did it drop
@@Iammarlonbrown payed my personal loan off (not early) and my credit went up to 810 from 780. I also have a student loan and truck loan open as well atm. I’d rather invest my extra money and keep a consistent payment. Works for me anyways hope that helps you!
Your credit score is equally correlated to how much money the system can syphon off you. People gotta stop throwing money away to keep their score.
Your lighting is A+, my friend.
Bother - may I suggest you make This below name correlating this to the Chinese Credit Scoring System; you know, the system where an entire nation's people are enslaved by their government over systems exactly like this? We need people who have influence to bring to light these types of correlations to get people asking and thinking or we will see ourselves slip into a tyrannical nightmare
Bad khencorp
I went the full 6 years with my auto loan. Finally reached the payoff date and my score dropped 54 points from that account being paid in full. I did not pay it off early . It sucks
You stating this made me decided to pay my car off early anyways besides the point lenders can see on time payments anyways and that helps a ton ton
Good advice! I like your strategy to boost the credit score. Ultimately I'd like to be debt free.
W h a t s app - two, six, zero, two, zero, three, zero, nine, zero, nine
That is why you get a credit card, lock it in the bank portal, and forget about it. Use another CC for perks which could require a different card frequently to get better perks. As that locked card account ages, you will get credit for average account age. You can't just get a CC and not use it which is where the second CC comes in.
Ok ill keep paying interest and losing money.. and Ill get different kinds of debt cuz credit score likes that.. few car loans a
student loan handul of credit cards a mortgage ... yess I will swim in debt and pay thousands in interest so I get a nice big credit score yayy!!
Very odd how it temporarily penalizes you for paying it off early. But it makes sense. 🤷🏼♂️ Although it seems backwards sometimes.
True.
So true, it is a bit backwards from our perspective. It took me a long time to get how credit scores are more about whether we're a good investment for the bank than our actual good or bad financial habits.
Look up daveramseytech via tele - gram
Some lenders have no pre payment penalty so you can pay off early
Yeah that’s why I’m 💭, if U pay it off shouldn’t your score increase ✅ this is weird when I first had this discussion.
I bought a new car and got a $2,000 rebate to finance. I paid 90% of the loan balance the first month. Then I merely paid $100 per month until it was paid off. Saved a bunch of interest, got a rebate and added to my positive credit history. Car dealers will often give you a better price if you finance through them and most loans do not have a prepayment penalty. There is no advantage to pay cash.
This has just happened to me...my score dropped 44 points 😫😫 I was at 821!!!
Ouch. Give it a few months it will climb up again.
I dropped 61 points but it only took 4 months to bounce back!
That’s krazyyy
So…one year later would you rather still have that debt?? Lol..I’m sure your score went back to over the past 12 months and now you have no school loan debt…this was dumb
Very true, done this 4 times in 4 yrs and each time took a huge hit on scores.....30-50pts
I never thought about that… Here I was trying to pay my car off as fast as possible (literally every spare penny) but inflation is at 6% my interest-rate on my car is 2% so thinking about it and throwing money away paying it off early so thanks for pointing that out.
No you were throwing money away in interest by not paying off the loan.
Well damn , this what I need to know about!!! I was gonna pay off my auto ….glad I tune in on time just couple of hour late…Thank you for this great information u make my days 🥰🥰🥰..👍👍👍
No one does better than Daveramseytech v*i*a tele - gram
WORDS ARE NOT ENOUGH TO EXPRESS MY GRATITUDE TOWARDS YOUR KINDNESS TO OUR FAMILY this name below WE ALL SAY THANK YOU VERY MUCH
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Yea Navy federal gave me a really high limit. I applied and was denied at first so I got a service from this name below, and I was approved for a capital one. The limit was so small lol but I took it and worked on it. Because if that it helped my credit and I believe that’s what made me finally get approved for navy fed with such a high limit. they're still working on increasing the capital one since it was so low. All in all I’m satisfied.
Nothing trumps peace of mind of being debt free. Pay it off!
One thing i can say is i took a loan higher than the consolidation of my credit card and my score jumped 50. So it depends on the reason for the loan as well
As always excellent content from Naam, my fellow military veteran.
Credit is a myth…a game that we’re forced & accustomed to play.
Tell me more?
@@gogurletc8170 FICO is a scam, it is a system designed to keep you in debt, you become a slave to FICO chasing that high FICO score. You are better off paying off your debts and saving money. People don't realize just how much money they pay out in interest that they instead could have been putting into their own bank accounts.
I’m planning on getting a new motorcycle with a loan amount of $7500 after putting $2,000 down. It’s for 72 months so my payments will only be $132. I owe the same amount left on my truck but the monthly payment is $420. So my plan is to open the new loan and pay off the other to help my debt to income ratio while also keeping my loan amounts and types the same. ( I have $20k in the bank currently )
Do you know if your credit score may still take a hit because the loan of your truck (although paid off/ now closed) was much larger than the loan of your motorcycle (new installment loan)? In other words do they care you closed a huge loan? Or so long as there are ongoing installment loans regardless of amount, your score will not drop?
You know you are paying $2,004 dollars in interest for that long term loan, Pay off the $7,500 dollars as fast as you can and pocket the interest into your own account. You are doing exactly what FICO was designed to do, keep you in debt because you are worried about FICO score. FICO is a scam designed to keep you in debt.
Paying it down will benefit you more than paying it off.
What u mean by paying it down
As of right now since I am young and credit is around high 600 low 700s I choose to continue building my credit later down the road will forsure want to be debt free
got it. so ima gonna pay my truck down to owing $50 remaining, but then pay off ALL of my credit card debt to $0 balances. thanks for telling me this i plan you apply for a home at the end of this october
I thought this too but can this legitimately work. Wouldn’t it still hurt you when buying the house because you’ll have active Debt on a Car loan?
paid all my debts… except my mortgage… now im around 811-820 score
you’ve been doing since we meet, surely coming back for more my life
If you have a $1000 emergency Loan at 95% Apr idc who you are. Pay off that loan
Learned something new here! New subbie.
Awesome! Thank you!
Wuz up Namm..great content 👊🏾
Thank you for the breakdown
Just the video I was looking for
I would do half
Pay loans half down to optimize credit first
Then pay off
Being sure to have other loans on my y
I just paid off my loan early, score dropped over 100 points… I wonder does those points going to bounce back the month after?😢
Thank you for this!
Financial system built on debt
Mine was 9.9% interest and only had 4k left on a 10k loan. Didn’t wanna keep paying interest on something I can get rid of and also it raised my credit enough over the 3 years I think I’m good
I think it's good advise, I read threw the comments to see other peoples opinions...Most opted to pay off their debt immediately and settel for poor credit rather then a better score and while that advise might be good for say.
And 85 year old whom will most likely not need any future financing for house repairs for flooding, fire, tornados, vandalisum, a morgage?...a new or used vehicle....The fact remains our lives are always changing and we are always looking to improve it...So you paid your loan off your debt free but find that you now pay an 8.5% interest rate on everything from fuel, to food, to clothing....You may in fact find yourself needing another personal loan soon to make up for the cost of living increase your raise doesnt make up for...but wait it gets better...now you have a poor credit score...So you have to take peoples advise with a gain of salt....It may not apply to you and making a small monthly payment may actually turn out to benifit you later...or maybe the unlikely will happen and the Fed will drop interest rates to a zero interest rate 0% for another 10 years dispite the massive 200 Billion dollars they owe....🤣-When Pigs fly....good Luck with that Loan application kidz.
LOL, yeah right, try to get a loan after a natural disaster has hit your area. We went through Hurricane Ian we have insurance but to get things moving quicker we were going to take out a home equity loan, our home only suffered some shingle damage and we lost some dry wall from the porch ceiling. Our home is paid off free and clear. Our bank even sent out emails saying they were there to help, but when you tried to get a loan they laughed in your face and not banks were making loans. We ended up getting the insurance checks and used our own money to cover the 2% deductible which was $5,900 dollars and upgraded to a metal roof and paid the price difference over a shingle roof. But if you think you will get a loan after a natural disaster hits even if you have minimal damage you are dreaming, you will be on your own.
FICO is a scam to keep you in debt. Do yourself a favor pay off your loans and save money instead, you don't want to become a slave to FICO chasing their corrupt scoring system.
Seem like there is a certain amount of credit you want to to pay off to benefit your credit.
This video have myself in mind. I have currently 2 student loans. It was said September 30th of this year student loan repayments starts. But reading a few articles about student loans, they have been pushed back again January 31rst 🤔. Either way I'm going 2 pay mine off 💯. So I can have less debt in my name. In regards 2 getting a 🏡 in the near present The last installment loan I had from my credit union. Their wasn't a penalty to pay early 🤝
Great content brother. Semper Fi
@@barbarap.bishop195 absolutely. However, the credit bureau’s will annotate in the remarks on your file that “account being managed by debt management company”. THAT is what they don’t tell you. And THAT can sway the judgment of creditors. What is being shared in this video is the way someone is truly assisting the individual to get it right.
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Great info.
Early I’m at 760 I know a hit will come but it will go back up in a few months
I’m aiming towards applying for a home loan in 2023. With at least 40k saved towards the home. I just approved for a personal loan of 7k to consolidate my debt. Which I used 4k to pay off all my revolving accounts. Would it make sense to take 1000 and use it towards the personal loan? There’s no prepayment penalty. Thanks guys
I would say yessss ! When purchasing a mortgage you want to make sure everything is paid off...0!!!!
Don't need 40k...should have just used that to pay off debt! ;)
Okay, so I have a 5 year personal loan, I have been paying it since 2018, my balance is 1,000 now. My goal was once I hit 500 to pay it off completely!! So you are saying keep paying the balance till it's done, so my credit score won't go down?
Why worried? Dave is helping. D m W h a t s app - two (2) six (6) zero (0) two (2) zero (0) three (3) zero (0) nine (9) zero (0) nine (9)
Thanks just got a 3 year loan from AX and I think I will keep it for the term
Awesome content credit 102
i APPRECIATE ALL YOUR SAGE ADVICE MY BROTHER!!!! GO ARMY!!!! ;) lol
I did pay off my car waaaaay before due date and my credit score remained the same lol
You must have other debt
@@makinzie8793 nope tbh, not at all, no student debt, no mortgage as well lol
@@mr.cardris You got lucky then, do you have another loan of some type and do yo have credit cards. If you have no type of debt it is hard to believe that you have a high FICO score. FICO is all based off of installment loans and revolving loans, you become a slave to FICO chasing that high credit score and to do that you have to have credit on the books. When we paid off our mortgage our FICO score dropped, when we paid off one car loan our FICO score dropped when we paid off the second car loan our FICO score dropped.
I just paid off my motorcycle loan and it didn’t change my credit score, probably because I still have a car loan. I think I will pay off my car 1.5 yrs early even if it drops my score, I’d much rather have zero debt. I already have a mortgage anyways and of course I will of just paid off my car….so I wont be needing a loan any time soon anyways. My score is 771, even if it drops 15 points it’s still good enough.
We paid off our mortgage and our credit score dropped, we paid off a car and our credit score dropped, we paid off our other car and yep our credit score dropped. FICO is a scam designed to keep you in debt, you become a slave to FICO always chasing that high credit score which means you will end up having to have multiple types of loans going at once. You pay all that interest to others that if you just paid off the loans you could put that same money going to interest plus the principle amount into your own bank accounts instead.
Just finished paying off a car loan a couple months earlier then what it would have taken. Score dropped 30 points. I also just paid off a personal loan so I'm worried if that will drop it even more. Was in the 800's so it was a gut punch to see it drop that much.
This is honestly disappointing, they punish your if you do the wrong thing and also punish you if you do the right thing, it’s flawed.
I plan on paying off a car loan 1 year early. My score is in the 790s do you think my score will drop more than yours (30) because I’m paying off an entire year in advance? Or do you think the penalty is around (30-40) regardless of how early you close an installment loan.
@@GWDell No way to tell. My score did go back up two months later, but the drop was not cool lol
FICO is a scam, it is a system designed to keep you in debt, you become a slave to FICO always chasing that high credit score which means you have to have multiple types of loans and means you are paying other people a lot of interest plus principle. Pay off the loans and put that interest and principle into your own bank accounts and before long you won't have to rely on taking out loans.
Thank you 😊
So if i pay off my auto loan which only has 6300 left on it ....will my credit score still go down if i have student loans still being payed off? And if I pay 90 % of my auto loan would the next payment be due the next month. I was a little confused on what you said.
Thanks for video
I have a car loan from 2021 for 6 years. I've paid it down to $822 this month. I have 2 credit cards as well. I would like to buy a house next year. Is it best to see if I can stretch that $800 out for a year so my credit doesn't take a hit?
I have 2 car loans, two credit cards. I’m looking to get a personal loan that costs only a little more than one of the car loans per month and pay that loan off completely while also paying down both credit cards to 30% utilization or less. How much could this affect my credit score?
It will likely initially take a hit from the loan being approved but once you get your utilization to under 30% it will shoot back up.
FICO is a scam, it is designed to keep you in debt, you become a slave to FICO always chasing that high credit score. You are pissing away your own money in interest every month, pay off your loans and put the interest and principle into your own bank accounts. Instead of making others rich you will be amazed at how fast your own bank accounts will grow when you are not paying your money to others every month.
How do you calculate the interest you’ll pay if paying off a loan early. I’m considering taking a loan but want to pay it off early due to high interest. Hypothetically if it was a 5k loan with 20% interest I’m curious how to calculate how much I’d actually pay in interest if I paid it off in 2 years vs 4
Go online and search a loan calculator you can put in your information and it will show you everything. FICO is a scam, it is designed to keep you in debt, you become a slave to FICO always chasing that high credit score.
My score dropped by 40 points for making a 3k payment on my Citi Costco card , what did I do wrong?
*Did you pay it off completely?*
You might have paid it after Citi reported the statement balance to the bureaus. If the balance is still low next month, your score should go back up.
If you took out a personal loan and decided to use 50% to pay down debt, does you putting the other 50% back towards the loan balance shortens the time to pay off the loan or just extends months out that you wouldn't have to pay
I was at over 700 credit score and then I lost my job and maxed my cards I can pay it off in a few months but I don't know if I pay it all of at once if it'll go bk up a lot or a little vs taking my time
So my score is 779 I just got a loan from Klarna for $5,600 0%( APR) I still have $1400 on my Amax if I was to pay off my Amax do you think my score will drop even tho I have a 0% (APR) rate on my loan?
Do you have the answer, I have the same question. Don’t think your score will drop if the loan from klarna isn’t truly considered an installment loan, regardless of APR.
does the same apply for business credit? vs personal credit? im starting a business. and i have liquid cash, im thinking about taking out a loan, just to pay it back before the fees apply. with the goal of building on my credit. not sure if doing this will set me back
I have 5 credit cards that are all paid to $0 each month religiously. I am a co-signer on a student loan that is paid on time. I have a $10K balance left on my vehicle and came into some cash and wanted to clear this for the next year and pocket the monthly. My Credit Score is 790 but can't seem to breach 800. Would paying off the vehicle alter my credit score or should I ride out the payments for the year. Once paid off , does THAT cause a change in my Credit Score too?
I know it is two years later but the advice would be pay off the loan and put the interest and principle into your own bank accounts. FICO is a scam designed to keep you in debt, you become a slave to FICO always chasing that high credit score.
This happen to me wish I didn't pay it off, cause it was doing amazing to my credit n wasn't a bother to me.
I paid off two thing and my credit score went down 40 points
FICO is a scam, it is designed to keep you in debt, you become a slave to FICO always chasing a high FICO score. Pay off your debt, instead of paying your money to others put that interest and principle into your own bank accounts and before you know it you will have a large amount of money in the bank. Stay disciplined and keep putting money into your accounts. Why give all your money to others who become rich off of it when you can save it and make a nice life for yourself.
I want to pay off a personal loan early and I still have a auto loan active and in good standing. I've got 100% on time payment history. Will it drop my score if I pay off the personal loan early? I've done this once before and if I remember correctly it increased my score a little.
I have a student loan at zero interest, 10K.
And a Loqbox account for 1.2K.
Suggestions for keeping installment loan in my mix.
Since you have the student loans you should be fine with extra installment loans
How did you get a zero percent interest student loan??!? 😳 Through what company
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@@kellishort3581 ... no what's app for me.
You can chat me on messenger 😉
Hello. I paid Down my loan and have about $40 left on it in principle for the next 36 months. But my payment amount that’s due hang updated? It’s still at $72+ a month. How can I fix this? Do I contact the credit bank to change my amount or what
Hi I wanted to ask u have made a vid about jobs that don’t require SSN and don’t need high school diploma? I want to help my brother because he didn’t have the opportunity to finish school and I want to help him out. Plz let me know this isn’t possible 😅
Help your brother get a GED and yes he will need a social security number, without a high school diploma or GED he will always end up with minimum wage jobs and even most of those will not be available to him.
I left $250 on my self credit builder secured card I really want to switch it to somewhere else or to another secure card I'm not saying that self is bad but I really want to change the secured card I don't want to pay any more interest fees like I said I do have $250 on the card that I'm not touching but instead of having self I would like another secured card or something. What do you think 🤔
Which is better, 1% or 2% utilisation?
1%
What is I need to pay my car to buy a new house
Paid off my car two years early and score dropped 18 points instantly. 😡😡😡
The irony right? You’ll get back there
@@NaamWynn whats ur mail
That is because FICO is a scam, it is designed to keep you in debt, you become a slave to FICO always changing that high FICO score. Pay off your debts and save the interest and principle instead by putting it into your own bank accounts.
ME2 I rather be debt free and peacefully happier. 😂..No more Nightmares..obout debts ever again
I just did this and it went down 50 point s
Whould paying a year worth of payments at a time a bad idea?
I've paid off numerous personal loans early (since they had no early payment fee) and it NEVER dropped my credit score. It did always INCREASE my credit score.
So I just can't understand where Naam is getting this thought process. I mean, I've never seen it for myself when I pay my loans off early
also, I can not STAND DAVE RAMSEY. That guy is a SCHMUCK
That is because you always have installment accounts and revolving accounts and no Dave Ramsey is not a schmuck, the schmuck's are those who stay in debt paying all that interest and principle to others, FICO is a scam designed to keep you in debt. Add up all your debt each month and instead of having to pay it to others put it in your own back account and after 12 months look at how much money you will have in your own accounts instead of paying it to others.
Credit = Debt ability
Odd question, what about a lease program for a car? Is that the same as a loan to the credit agencies?
Yes, its an installment loan
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Pay off all your debt, FICO is a scam, it is designed to keep you in debt, you become a slave to FICO. Instead of paying others interest become debt free and put all that interest and principle into your own accounts. Why make others rich off your money when you can save it for yourself. Leasing cars is one of the worst expenses you can have, what happens if you have an event happen in your life and you can't afford to keep paying those lease payments? Say you have 4 months left but once that forth payment is made you just can't do another lease. Now compare that to if you purchased the vehicle instead and you had 4 months left you can scrape by and get those 4 payments made, now instead of being without transportation you have a paid off vehicle and you now have that payment of interest and principle back in your own account working for you.
I have my car loan and a credit card
Is it bad if I pay my car off early???
Pay off all your debt, FICO is a scam, it is designed to keep you in debt. Instead of paying all that interest to others pay off the loans and put that interest plus the principle into your own bank accounts, why make other people rich when you can save the money and grow your own wealth. You will be surprised how fast your account will grow when you are not paying others the money you earn each month.
reference its many times over I’m sure no one come close to you with all
Do you repair credit and if so how do I get in contact?
@@barbarap.bishop195 thank you!
I’m not taking on any clients currently, most people in the comments are spam
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The Insurance company you promote on here. Ask to many personal and non of they business questions. It's about you and your car, if feel all they need. Not my education, my bank, etc. Just my name, license, info on my car. It's not like I'm getting coverage by them. Just checking prices.
I feel you. Depending on your education, you can get lower rates. Most insurance providers will ask something on the lines of this.
have turn around now..
Ok
You need a loan? if yes drop a reply . thanks !!!
Semper Fi
A credit score is the bank's version of a slave chain! Don't be brainwashed and be a modern day slave by listening these UA-cam clowns. Carry zero debt and you will come out a winner in the long run! Remember, you're born debt free, keep it that way!
Dude ur hot and it was an honor to listen to you. Not sounding creepy at all I promise. 🙈
Pay it off early fourth of the stupid games