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direct0

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Just bought used car - should I get a loan?
Just paid in full for a used car. In effort to working towards a stronger credit score, should I establish a new loan even if I don't necessarily need one?

If the loan that can be paid off easily does help credit score in the long run, what's the best way to pay it off? I know that paying off quickly helps avoid paying more due to interest, but how fast should I pay it off and experience the most benefit from opening the loan?

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I do not have a definitive answer and want to tell you that upfront, this is just my opinion. If I could pay in full for a car I would do so every time. I do not see any benefit your credit score could give you that makes it worth paying the thousands in interest over the years for an unnecessary loan. A car loan will get you a hard inquiry and a loan reported to your credit, the benefit will come from an on-time payment history and  the showing of paid in full once it is. Although car loans with on-time payment history is good for your credit report and score; I couldn't imagine that the benefit it brings is worth the amount of money you will be wasting on interest. In sum, I recommend you focus on utilizing your credit cards in a manner that maximizes the monthly pay off in full and on time payment history and do not waste the money on interest.

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