My friend asked me this and i have no clue.

He is in bankruptcy from a hospital stay while he was unemployed, but was approved to purchase a low end car to replace one that was totaled in an accident. The interest rate is mid teens. He is expecting a payout from the other drivers insurance, which could likely payoff the loan. Thankfully not injured in the crash.

His question was would it be better for his credit score to pay off the loan asap, or make payments?

My answer was to payoff the high interest loan asap for cash flow purposes and not worry about his credit rating till after he is out of bankruptcy and keep debt to a minimum.

Am I wrong?