Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
Re: Auto Loan | Reporting Schedule?
1) yes, it takes a few days for the lender to report the account closed and show the balance paid in full.

2) paying off the auto loan will help in getting a mortgage as your debt to income ratio is lower. However because it is now a closed account and you have no other auto loans reporting, you will lose diversification and your score will probably drop some initially.

Do you have other open trade lines reporting? This is important for your credit score to go up. Also be sure you are not hovering around the minimum score requirement for the mortgage as a drop in score from the closed auto loan could hinder pre approval for the mortgage.
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