Re: Paying off my car loan
09-16-2007 01:14 PM
Bottom line (since I recently made this mistake!), DO NOT pay off your auto loan if you think doing so will raise your FICO score, thinking you will be paying off debt. This strategy only works if you pay down your credit card debt. Your auto loan is viewed as an installment loan, and the 'fico scorers' like to see this type of loan on your credit reports. My FICO scores actually dropped after I paid off my auto loan a year early. I would keep this loan for its entire term if I were you.