Asked by Charmed077, Germantown, MD • Mon Jan 31, 2011
My husband and I have 3 installment loans currently open (2 auto loans and 1 unsecured consumer loan). They each have a balance of less than $5000 and I had planned to have them all paid off by the end of the year by making extra payments. I'm now reading that some banks require a minimum of 4 open and active tradelines. While we are going to be aiming for an FHA loan which I know does not have this requirement, is it still a good idea to pay these off early? The only other open and active tradeline we would have would be our credit card if we closed these other accounts. Even if FHA does not require 4 open tradelines, could closing these accounts have a negative (or even positive) impact on our credit scores? Our debt to income ratio is pretty great (less than 12%) so whether we pay them off or not, our DTI wouldn't really be impacted. Thanks for any advice!
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