Originally Posted by tigerfan00
I was told back then when I was paying on my truck that for someone with no credit, it's better to maintain the loan for the life of it rather than pay it off early
It depends on how early and in what manner it was paid off.
A 72 month loan paid off in 48 months looks very good, so long as the payments are consistently high, or consistently ramp up as time goes on.
A 72 month loan that is behind a month and suddenly paid in full at 48 months makes it look like a poor credit risk managed to pull in a large sum, perhaps from a property sale or home refinance. That looks bad.
On credit cards, you want every one of them to be below 50% balance, and preferably below 20% balance.
While your credit score looks better if you pay the balance every month, CC companies refer to those customers as "freeloaders" since they make no money off of them other than annual fees.
But when a credit card is paid off, even if it has an annual fee, do not close the account. Closed accounts, even closed at your request, look worse than an account that is simply not used, but available. Closing "empty" accounts makes it look like you have a lack of faith in your own ability to be responsible with your credit.