Paid off car loan - Impact on CR?

[SanFranMatt]

I've read quite a few places that paying off a car loan will not help your score.  However, I'm unclear whether it hurts the score, or if it's just no impact?  My gf plans on paying down her car loan completely (currently $10K left).  Would this drop her score since she will lose that source of credit?  Or will the loan stay on her credit for 7 years, so it will still have a positive effect?

[Anonymous]

I can't advise on the score implications but a positive TL will stay on your reports for at least 10 yrs so yes, a positive.

---

SanFranMatt wrote:

I've read quite a few places that paying off a car loan will not help your score.  However, I'm unclear whether it hurts the score, or if it's just no impact?  My gf plans on paying down her car loan completely (currently $10K left).  Would this drop her score since she will lose that source of credit?  Or will the loan stay on her credit for 7 years, so it will still have a positive effect?

---

[fused]

---

SanFranMatt wrote:

I've read quite a few places that paying off a car loan will not help your score.  However, I'm unclear whether it hurts the score, or if it's just no impact?  My gf plans on paying down her car loan completely (currently $10K left).  Would this drop her score since she will lose that source of credit?  Or will the loan stay on her credit for 7 years, so it will still have a positive effect?

---

Scores can go either way or not change. In my personal experience I have gained a few points after paying off an installment loan.

[Anonymous]

Paid off a small one of 3k, 13 months early (got tired of looking at it), and score did nothing. Did it to get the TL because all of my others aged and had fallen off. I despise borrowing for vehicles but bit the bullet for a "work" truck.

saladdin

[SanFranMatt]

Thanks for the info, everyone! I'm not looking for a big jump, but just didn't want it to take a hit. Looks like it'll have very little effect (and will save her a couple grand in interest).

[Boswd]

and THAT is the most important thing.  Even if it did drop a couple of points, which It won't, but hypothethically if it did, who cares,  thethousands of $ saved  is sooo much more important than a few points.

You can make up points any time, you can't make up for thousands of dollars lost to interest.

Message Edited by Boswd on 11-19-2007 10:38 AM