Car Loan Payoff

[skarie23]

Hi, my current fico score is 652, I have worked hard to pay off about $6,000 in credit card bills. I have a car loan and the loan is about $9,000. How would this affect my credit score if I payed off my car with a lump sum? Thanks.

[dilligaf_racing]

It may or may not affect your score at all. How long have you had the car loan open? Any lates? Your biggest score gains will be from paying off your credit cards. 

[Anonymous]

Sadly paying off an Installment loan doesn't do much for you......

It is a contract that you sign to pay X amount for so many months.....paying that obligation off early doesn't earn you any points.  You simply fulfilled your contractual obligation early.

Don't worry about your score and pay off your loan If you can afford to do so and not dip into your Emergency fund.