Any financial planner or accountants out there?

[scoobydrvr]

Sad day: I'm having to sell the bike; I can't afford it anymore. I bought the bike in Feb with a loan and haven't missed/been late on any payments.
My question: if I sell the bike now (after 10 months of ownership) what will this do to my credit score? The whole scoring system is pretty ambiguous to me and the only thing I know is that if I could afford to keep the bike for the life of the loan, my score would have gone up significantly (it wasn't bad to begin with).
Will it go down from the original score because I'm terminating the loan early?

 

[BranNwebster]

Nothing will happen to your score as long as your not late for a payment. If you pay it off it will look like you just pay off your debts. Unless there is a pre-pay penalty, which probably isn't the case.

 

[scoobydrvr]

So... no gain, no loss? Just back to what it was when I pulled out the loan?

 

[DefyInertia]

You could google this...probably. But my understanding is that taking out loans and paying them off can only help your credit score; however, I've been surprised before.

 

[Red Wazp]

+1 to Defy. Just don't be late or miss a payment

 

[Kilbane83]

Sucks you're having to sell her

From what I understand, it won't hurt your credit score. It won't help it either though. Creditors like to see at least one or two long standing, unblemished revolving credit lines that are consistantly being reduced. This establishes a baseline to determine your responsibilty in dealing with your money and paying back debt. But they also don't like to see alot of debt either. It's a funny balance. So paying off your loan in full after 10months won't be negative, it just won't be as positive as it would have had you kept paying it for another year or so.

G'luck with things

 

[mikebike]

should not have any adverse effect on the score... :thumbup:

 

[scoobydrvr]

That's what I was hoping to hear. It's a sad thing, having to sell her; she was beyond good to me. The sad thing, I won't be able to buy one new... ever.

 

[DefyInertia]

So buy a used one some day.