Originally Posted by jb-m3
Just fyi, I read somewhere that doing that will really hurt your credit rating. Banks don't like to see people taking large amounts of credit and turning around and paying it in full that quickly.
I think that with the current financial climate, that banks would rather you pay the loan off quickly.....or not take one at all.
I have never been aware of any penalty in terms of an impact of the credit rating for paying a loan off early. Some loans may have a prepayment penalty, but that usually a known element of the contract.
I'd rather let my FICO suffer by not having a number of open lines of credit. At the end of the day, I am more concerned with my personal debt to income ratio and concentrate on having zero debt.
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