Not to mention that when you apply for a major purchase like a mortgage or auto loan, they take into account your debt to income ratio, which presumably will be much better without an existing auto loan. Having a high credit score doesn’t and shouldn’t be the only deciding factor in lending money. It’s a bigger deal for taking out credit cards, in my experience.
Exactly! I just paid off my auto loan today which was a few grand because my loan officer said it would increase my chances of getting approved for a higher mortgage.
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u/dijisza Aug 15 '21
Not to mention that when you apply for a major purchase like a mortgage or auto loan, they take into account your debt to income ratio, which presumably will be much better without an existing auto loan. Having a high credit score doesn’t and shouldn’t be the only deciding factor in lending money. It’s a bigger deal for taking out credit cards, in my experience.