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      03-10-2010, 09:58 AM   #29
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Drives: 2010 M3 Coupe
Join Date: Jul 2006
Location: New York

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Originally Posted by jb-m3 View Post
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.
That is 100% correct. It's ok to pay off a loan slightly before it's due but it's not ok to take out a loan and then pay the whole thing off in the 1st few months. It will definitely hurt your credit. The bank sees it like this: Financially responsible people pay their debts and are worthy of high credit scores; financially responsible people would also anticipate any sum of money coming their way that would allow them to payoff a loan within the 1st month and opt to not take the loan. That's why it's a knock on your credit.