How does a paid off car loan look on your credit profile?

[Anonymous]

Hey guys,

im getting close to paying off an auto loan that's been with me for about 5 years. Perfect payment history etc. it's about to be paid off soon. I was wondering how does the completed paid off loan will report/look on my credit report? Does it look favorably and looked up upon when creditors see that Its a paid off a loan? Does having a paid off loan on your report help you get another car loan since they see you're credible and had perfect payment on my last loan?

how long does it stay on my report and what will thr status say? "Paid as agreed" ? " completed"?

thanks any info on how it will look on my profile will be appreciated!

[Anonymous]

It doesn't necessarily look "great" per se. Mine showed as "Paid/Closed". It looks better if you have no missed payments than just paying it off. Paying it off can do more harm than good if it is your only installment loan. The payment history is much more important than paying off the car. The car before my last one was "paid off" also. The caveat was that the car was totaled and paid off by insurance lol. Nowhere in the report does it say how it was paid off, so there isn't much/any stock put into that. For all the next lender knows, your parents or significant other or some guy off the street could have paid off that loan lol. It will stay on your report for 10 years. Hope that answered your question.

[Gunjji]

Hello,

I have one from Wells Fargo and it looks like this on Experian..

Account Status- Closed

Payment Status- Paid

Payment Status Details- Paid satisfactorily

I think it will stay on your report for 10 years, might be longer Im not sure. But I think, the longer, the better.

Thats all the help I can be. Still learning.

[Anonymous]

I mean, my payment history on the 5 year auto loan is perfect, it's just about to be paid off soon. when getting another auto loan in the future will the lenders look into my report and see that I do have auto loan history ( that was paid  off and payment was perfect) and will that help me look more favorable? My friend says having auto loans in your credit history even when it's done and paid off is used as a factor to help you get your next loan. Wonder how true this is or if anyone had any experience about this. I wouldn't want my hard work of completing an auto loan go to waste if it's not helping my credit report look better lol 

[Chris679]

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@Anonymous wrote:

I mean, my payment history on the 5 year auto loan is perfect, it's just about to be paid off soon. when getting another auto loan in the future will the lenders look into my report and see that I do have auto loan history ( that was paid  off and payment was perfect) and will that help me look more favorable? My friend says having auto loans in your credit history even when it's done and paid off is used as a factor to help you get your next loan. Wonder how true this is or if anyone had any experience about this. I wouldn't want my hard work of completing an auto loan go to waste if it's not helping my credit report look better lol 

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Yes, paid installment loans help you get future auto loans directly and indirectly.  It is not uncommon for your FICO score to actually drop a bit once you no longer have an open installment loan.  In my experience i get the most out of a loan between the time it is 2/3 paid off and when I actually pay it off.  That's the bad news.  The good news is that like you said having paid installment loans helps your mix of credit and looks great to an UW that is reviewing your file for a loan.  Also, FICO has auto enhanced scores that give more weight to auto loans.  I don't know how often those scores are used but they do exist.