12-06-2013 04:16 AM
I recently refinanced my auto loan through my local credit union. Does anyone know how long it takes for the old loan to fall off your credit report?
I received a letter two months ago from the original financing agency stating that I'd been released from the loan, and that they had been paid in full. But I notice the old loan is still appearing on my credit report, which is a problem I presume as my debt is double what it should be.
So, when will the original loan age/update/otherwise go away?
12-06-2013 05:11 AM - edited 12-06-2013 05:12 AM
The previous loan stays on your credit for up to ten years after it is paid and closed. It actually helps you and should not be a problem and certainly shouldn't be reporting a balance.
How does the old tradeline read now that it is paid off?
It should read zero balance and either "paid as agreed" or some other notation.
It will continue to reflect your payment history.
12-06-2013 11:31 PM
Well, I can attest to the fact that Credit Karma is reflecting it as a balance. Credit Karma shows two loans with a total balance of them combined, so that's kind of a bummer. Though, I've heard CK isn't the most reputable game in town.
I was released from the old loan two months ago, and I'm kind of curious to see if it'll update itself (that'd be a little too convienent probably. Lol)
For a more accurate report pertaining to this topic, what would you suggest? Are there other options available aside from pulling a report? I'm considering calling up the knucklehead agency that I had the original loan through and seeing what their deal is.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.