Thinking Of Leaving A Balance Of $10O On Auto Loan

Thinking of leaving a balance of $100 on my auto loan to keep the loan active, instead of paying it all off.
Would this be beneficial to credit score ?

Late fees?

So you’re not going to make the agreed upon payments and leave a $100 on it to improve your credit? Am I missing something here?

I assume you want to make payments on the 100, but it doesn’t work that way. You will owe that on the due date. For reference, if your payments are 300 a month for x amount of years. You decide to pay 100 a week. But you still owe 300 on the due date. The other money goes to the overall balance.

Don’t listen to these guys op. They’re all crazy. It’s a little known fact that once you have 100 dollars left on a car payment it’s basically paid off. So they don’t care how long that last hundred bucks takes to pay amd will continue to bump your credit score every other week for being so smart with your money.


Your right I leave 100 on every loan. 2000$ 6 months same as cash. Nope they get 1900$ My credit score is so high now just bought my first used single wide and only needed 1 parent to co sign considering I’m only 45 it’s pretty impressive.


Was going to pay a 10k loan off early, but figured closing the loan would drop credit score.
So if I paid 9900, left the $100, and made interest payments on 100, instead of 10k, would that be beneficial to credit score ?

What’s the end game? How bad is your score and how is it lowering going to affect you in the future?

Not wanting it to go down “just because” is dumb. If it’s going to affect an upcoming loan or mortgage or something then it’s worth looking into.

But it seems like a shortsighted idea.

Term loan vs line of credit. Which do you have?

Yes OP, I currently have around $200 on mine with 4 more years to go. My score shot up like 30 points because of the low utilization (less than 1%).

Some financial institutions will move your due date into the future when you overpay with no penalties, like my credit union. And paying $17 on interest over 4 years seems like a bargain for the beneficial effects on my credit score.

I guess a 30 point jump is good for a person with mediocre credit. That $100 balance isn’t worth the headache to keep around for people with credit in the high 700’s or 800’s.

I like to have as high of a score as I can, because I play a little game where I chase as many sign up bonuses from opening credit cards as possible. Every new account and inquiry penalizes my score, so this is how I counteract that.

Never heard of this strategy. Weird.

I can’t take credit for it, I learned about all this stuff at myfico credit cards forums and reddit r/churning, in case anyone is interested…

A car loan is paid in installments. Depending on how much you have left to pay, is you left only 100 dollars on it, it would be due whenever your loan amortized, the final payment. Credit benefits would be that you’ll still have an open savings with a low balance, but again this all depends on how much you’re paying off, and when that final payment is due. If you had 10k left, it could be good to let it side rife for a while, it will be reported as current with a low balance.

If you have a car note with a 500 payment and you send them 1500, you just puts made your payments for the next 3 months. Same thing with mortgage, unless you specify to apply the additional monies to principle reduction. This does not work with revolving credit, like a credit card.

Go you. The hassle isn’t worth it to me but I support you doing whatever you want with your finances. With a score that high, you are obviously have your finances in order.

I do, thank you! But just to clarify, this technique doesn’t involve any additional hassle. Is the same car loan you would otherwise have, the only difference is you overpay quickly at first and then just keep doing monthly payments with small amounts, instead of whatever the installment payments were originally.

I do all of my banking and bill payments online, so it really only takes a few minutes every couple of weeks.


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Lol at having your car repossessed with only $100 remaining

But what’s the point? So your score drops 30 points. You still have a higher score than 95% of people. You’ll still get cards and loans with the lowest rates possible.