topic Re: loan payoff early in Auto Loans

loan payoff early

Anonymous — Sat, 02 May 2009 17:12:53 GMT

will an auto loan payed off early help or hurt my score. I had an auto loan thet was to be paid off in 60 months that I paid off in 32 months. Will this hurt my score???

Message Edited by caregirl747 on 05-02-2009 01:12 PM

Re: loan payoff early

Anonymous — Sat, 02 May 2009 17:26:30 GMT

Any paid off loan "hurts" your score.

You will see a small point drop of under a 10-15 points. They will rebound though.

The point drop is negligible and any serious lending attempts you would make after that would be more impressed with your free-ed up monthly income - which would more then make up for the point drop.

If you can afford to pay your car off early, and still have several months emergencey funding in the bank, do it.

Re: loan payoff early

Anonymous — Sat, 02 May 2009 19:37:53 GMT

I'm not sure that paying off loans is universally a drop. I have experienced gains due to lower debt or also due to lower number of accounts with a balance.

Maybe those who experience the drop are experiencing a rebucketing??

Re: loan payoff early

Anonymous — Sun, 03 May 2009 19:43:24 GMT

Do not allow a credit score make a determination as a factor in paying off a loan.

The amount of interest you save is more prudent in financial decisions.

Re: loan payoff early

Anonymous — Sun, 03 May 2009 21:12:51 GMT

@Anonymous wrote:
Do not allow a credit score make a determination as a factor in paying off a loan.

The amount of interest you save is more prudent in financial decisions.

The OP has all ready paid the loan off. I think the question was anecdotal and curiousity on how it had affected FICO.

Message Edited by txjohn on 05-03-2009 02:12 PM