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Razorbackbelle08
Posts: 2
Registered: ‎01-09-2008
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Will paying off a car loan 4 years early raise my credit score?

I've never had a late payment and I have one small blemish on my credit. I just paid off my car loan 4 years early. Is this going to help my credit score?
 
Thanks!
Frequent Contributor
sunrise
Posts: 430
Registered: ‎10-28-2007
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Re: Will paying off a car loan 4 years early raise my credit score?

Could give it a ding for a few months.  People have said that losing the open TL has caused a temporary drop in scores.  You would think that it would help, but FICO likes to see open/used TL's?!?!  a.k.a debt!! 
 
I was going to pay off a loan (early) this month, but when I saw in these forums that people were actually losing points by doing so, I decided to keep it until AFTER my mtg. goes through in Mar.
 
Maybe someone else will have something more positive to say?!
takin' it one day at a time
Moderator Emeritus
fused
Posts: 16,374
Registered: ‎03-12-2007
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Re: Will paying off a car loan 4 years early raise my credit score?



Razorbackbelle08 wrote:
I've never had a late payment and I have one small blemish on my credit. I just paid off my car loan 4 years early. Is this going to help my credit score?
 
Thanks!


Maybe yes, but probably no...saving money is more important.
Credit Profile -
FICO 08 Scores (09-16-2014): EQ 824, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1 (Amex 07-15-2014)

New Visitor
Razorbackbelle08
Posts: 2
Registered: ‎01-09-2008
0

Re: Will paying off a car loan 4 years early raise my credit score?

I did save $1700 in interest....
Moderator Emeritus
fused
Posts: 16,374
Registered: ‎03-12-2007
0

Re: Will paying off a car loan 4 years early raise my credit score?

Whatever you might lose in points, and it might be none or a few, is more than made-up by saving 1,700 bucks. If you don't plan on apping for anything in the near future who cares about scores, saving money is ALWAYS more important. Nice job!
Credit Profile -
FICO 08 Scores (09-16-2014): EQ 824, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1 (Amex 07-15-2014)


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