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Car loan pay off

Contributor

Car loan pay off

I purchased a car in Nov 2013 and wrecked the car April 2014. My insurance paid the full payoff on the loan posted with the fiance company 5/12013. They havent reported to the credit bureaus yet. I was never late. Paid extra some months. Will this help my credit score any since the account was so new? I am trying to wait for it to report before I apply for another loan for another car.

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Re: Car loan pay off


TwoBeFree wrote:

I purchased a car in Nov 2013 and wrecked the car April 2014. My insurance paid the full payoff on the loan posted with the fiance company 5/12013. They havent reported to the credit bureaus yet. I was never late. Paid extra some months. Will this help my credit score any since the account was so new? I am trying to wait for it to report before I apply for another loan for another car.


What hasn't reported yet? The payoff? It needs to be updated to a zero balance.

 

Are you sure the insurance paid the entire amount due on the loan? Did you have gap to pick up the difference or a lot of equity at the time of the wreck?

Message 2 of 6
Valued Contributor

Re: Car loan pay off

Yeah, I concur. Make sure insurance FULLY paid the loan off. Call the lender or something.

 

But in general, no, I don't think you'll see FICO go up just because the loan says paid off. You might in fact see it go down because the loan is paid off (FICO likes open and low balance).

 

But what's your current score? If you are in the 700s or something, you generally don't have to worry about minor fluctuations.

For an urgent question Monday thru Fridays, feel free to email me directly remembermyfico //at// gmail /dot/ com if you need a response in 24 hours.
Message 3 of 6
Contributor

Re: Car loan pay off

The finance company havent reported a 0 balance yet. Yes I am sure the insurance company paid the entire balance they sent me a check for the remaining balance and the finance company sent me the sales contract with PAID IN FULL  date 5/1/14 but I havent got an alert from Equifax stating I have a change in an account.

Message 4 of 6
Super Contributor

Re: Car loan pay off


TwoBeFree wrote:

The finance company havent reported a 0 balance yet. Yes I am sure the insurance company paid the entire balance they sent me a check for the remaining balance and the finance company sent me the sales contract with PAID IN FULL  date 5/1/14 but I havent got an alert from Equifax stating I have a change in an account.


Hopefully it will update by the next statement cycle.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 5 of 6
Regular Contributor

Re: Car loan pay off

Well good news is you have physical prove of the pay off so if push comes to shove you will have an easy dispute. 

Myfico (7/16/14): EQ:736, EX:678(Prosper 7/16/14), TU:691(5/29/14)
Wallet:


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