Buying a boat with a lien

[Ratket]

I can assure you paying off a loan early and having a positive balance with your creditors does work. Also having good credit card habbits are a big plus. I have an 815 credit rating to prove it.

Most of this statement is true. However as I said before. On loans, the loan has to be open for a minimum of 6 Months before it can positively affect your credit ratting. As in if you take a 5year loan and pay it off in 3 months it doesn’t get reported to the credit bureaus “ Equifax / TransUnion”. Credit scores are what help people prove they are responsible and qualify for the “ Best APR” available. So in other words if you can’t pay cash then you need a decent credit score to achieve a loan with a good interest rate. But this is a mute point as I am sure the OP has no interest in paying a bank intrest on a loan he can pay off instantly. He would be doing it just to keep the boat purchase on the up and up to keep him protected.

Just my 02 cents.

 

[seanmclean]

In my experience paying off a loan will not raise your credit score, in fact I’ve seen mine drop slightly in some cases. I think it has to do with the bank reporting payments and the age of open accounts being effected.

Agreed, and whatever minor bump that may occur will be offset by the inquiry needed to obtain a loan.