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Auto Loan and Collection Debt

New Visitor

Auto Loan and Collection Debt

I read someplace that if you pay off an Auto loan before your loan term is up then it will drop your fico score because it shows that you don't understand the contract. Is this true? Also, how much can I expect my FICO score to increase once I have a collection debt removed? Hope someone can answer. Thanks for any help that anyone would like to offer.
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Moderator Emeritus

Re: Auto Loan and Collection Debt

Not true. And the effects of having a collection removed will depend on your overall credit picture. The important thing is that the collection is gone.
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