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Frequent Contributor
Posts: 360
Registered: ‎02-20-2008
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Impact of Auto loan payoff?

Is there a positive score impact if i have an auto loan paid off?

 

I have two autos right now with roughly 13k on each...if i have one paid off, will i see a score bump?  Right now they're at about 75% of max balance.


Valued Contributor
Posts: 1,841
Registered: ‎09-18-2012
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Re: Impact of Auto loan payoff?

I just paid mine off this month. I think a bump will occur because it will be an account reporting a 0 balance. From what I understand the more accounts reporting a 0 balance, the better.
New Member
Posts: 1
Registered: ‎07-09-2009
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Re: Impact of Auto loan payoff?

[ Edited ]

If you still have 1 auto loan open, then I'm gonna say your score will rise. You have to look at a balance of the types of accounts you have. Sometimes, a person with no mortgage account and pays off their auto loan early will see a decrease in their score, but where you still are keeping 1 of your auto loans open, this shouldn't be the case. If you just transfered the balance to another account, such as a credit card balance transfer, then you probably wont see a change. Unless, your balance transfer changes your credit card utilization ratio. Then, your score will probably drop if you don't have enough of a cushion between your credit card balance and your credit card limit.

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