Credit Cards Center Credit cards from our partners
New Member
Posts: 1
Registered: ‎03-14-2013

Paying off car loan and getting another

[ Edited ]

Hi everyone, new to the board with a question.


In August of 2011, I took an auto loan out for $8,000 @ 6.% from my local bank (without a cosigner). The term was 54 months. After careful saving and planning, I have enough money to pay my auto loan in full ($5500) 3 years ahead of schedule.


My question is, will it hurt my credit score or set me up for a potential loan denial if I get another auto loan soon after I pay this one off (probably a month after or so)? I planned on taking another $6-8000 out to finance a newer car (need a larger vehicle for work)


Is there a "waiting" period when applying for loans when you just recently paid off one? Wil it hurt my credit paying off early?


My last fico score was 733, and my Credit Karma is 751 (I pulled the big 3 credit reports last year and were all above 720), I'm using less than 15% of my avail credit ($15,000 credit limit across 3 cards). Never missed a payment, no derrogatory remarks, 5 years of credit history. I've had 2 auto loans out for $7-10000 in my name without a cosigner.


Thanks in advance

Valued Contributor
Posts: 3,099
Registered: ‎10-02-2012

Re: Paying off car loan and getting another

Pay it off, and wait for the reported pay off to show up on your credit report.


Once that has occured go out and get your next vehicle.


Your score may change a bit, but it shouldn't be a problem.


If anything the lender will like that the loan is paid off and your DTI is better.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    

     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
New Contributor
Posts: 72
Registered: ‎11-19-2012

Re: Paying off car loan and getting another

You should have no problems with your scores. You could even get approved while the other one is on there if u wanted to.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on 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.