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New Member
Posts: 11
Registered: ‎09-25-2012
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car payout

Im thinking about paying out my car earlier to free up money for a home. Will paying out early make my score better or worst?
Valued Contributor
Posts: 2,690
Registered: ‎09-26-2011
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Re: car payout

Neither.  :smileytongue:

 

...on it's own.

 

Is it the only installment loan that you have?

 

Do you have two installment loans?  Three?

 

If it is your only installment loan, your score may drop a bit when it reports closed...nothing to worry about tho.

 

If you have three open installment loans, paying it off will boost your score, because you'll only have two open.

 

If you've got two installment loans and pay one off, it won't affect your score at all.

 

Good luck.  :smileyhappy:

Current Scores: EX: 615, TU08: 639, EQ: 607. 04/01/2015.

Zero percent financing is where the devil lives...
Valued Contributor
Posts: 3,302
Registered: ‎06-09-2010
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Re: car payout


a1-iam wrote:
Im thinking about paying out my car earlier to free up money for a home. Will paying out early make my score better or worst?
This may help with your UTIL, but generally isnt considered a way to increase scores. Depending on others things on your reports really depends on how will impact your scores if it impac
Good Luck
May all your dreams and wishes become a reality!
Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: car payout

[ Edited ]

There are two types of utilization used for FICO scoring.  Revolving and installment.  Installment utilization is such a small factor that paying it off or down will do next to nothing to improve your score.

 

If it is your only installment type account and it is closed you may take a ding for credit mix.

 

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