Quote:
Originally Posted by Shaze
he's right. banks especially don't like you to pay off a loan quickly. for example, if you take out an auto loan it isn't good to pay it off within a year or even two years. they want you to pay the monthly payments stated on time. i guess one reason is that they get the interest by keeping the loan open. if you make large payments or pay the loan off early they don't get the interest (make money)
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No he's not and neither are you. Purely for credit rating purposes the single quickest way to boost rating is to use up to 50% of your available credit each period and then pay it off in one lump, starting again next month.
A change of country a while back meant having to look into that area in detail. Of course whether or not the banks prefer smaller payments for profit is a different matter. However, purely for credit score paying off each month is the way to go.