[Jakob]

Not really a long term or retirement related question. On the fence about paying off my motorcycle loan. I’ve had it for just over a year. Down to $5,000 on the loan. Wondering just how negative paying off the six year loan that early will effect my credit.

I’m hoping to buy my second home in the next 3-5 years, so credit is a big factor right now. No other debt besides my current mortgage.

[Stephanie]

It will actually help your score.

[Ross]

Paying it off will improve your score because you’ll have a lower debt-to-income ratio.

[David]

In 3-5 years any negative impacts from paying off the loan will be gone.

[Don]

Pay it off, have NO credit what so ever and when it comes time to buy a house do manual underwriting at a bank with a brain.

Explore these too: We are planning on being debt free in 3 years and home paid for in 8

[Lauren]

Usually those decreases in credit score are short lived and then the score goes up again.

[Nicole]

Congratulations on paying it off. Be careful when you’re riding it.

[Author]

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