I just put $20,000 on my auto loan to pay it off entirely. This payment (cashiers check) was submitted to the credit union's branch office on 12/17. However, my normal payment schedule is on the 1st of every month. So, two questions...
- Does auto loan reporting work the same way as a credit card would? In other words, will I need to wait a few days after January 1st for the change to show?
- How is this change likely to affect my credit score? From my understanding, it won't do much for my score, but it will help me get a mortgage loan next month (proof that a car payment won't take away from my income). Is this a correct assessment?
One other quick note: the car loan is only 7 months old, so in theory, I guess paying it off could potentially negate the negative effect that a "new account" has on your score? Since that new account is no longer in question.
Thoughts?
