Not sure it necessarily "helps" the credit score. Depending on your current mix of accounts, that will dictate if it helps it. A paid loan with no missed payments certainly looks good to a lender viewing the report.
@elcocaino2010 wrote:Does anyone know if paying off an Auto loan (never late or missed payments) that was reaffirmed during BK ch 7 bk help my credit ? It will be paid off no later than sept of this year 2016.
In the long run, yes.
In the short run, you will probably lose some points on your FICO scores when you pay the loan down to zero.
I know it's (a) counterintuitive and (b) dumb, but that seems to be what happens.
If you want to offset the short term point loss, you could start a little 'share secured' loan with a credit union like Alliant Credit Union.
