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Posted in Auto Loans
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Question By
finomagic

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automobile pay off will it help your credit score if you pay it off after about 2 yrs.

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It really depends on the rest of your overall credit profile, but in most cases when you pay off and close an account you can expect scores to DECREASE, yes I said decrease. Open and active accounts have the most benefit to your credit, so when you close them it hurts your credit. Sad but true. Do some reading on this and all other credit topics and if you have any more questions please feel free to ask.

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Reply by
jwsister

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I recently bought a new car and plan on greatly shortening the repayment period from 6 years to two or three.  Sure, my score might take a bit of a hit, but I will save on the interest.  Savings accounts don't pay very much these days so my goal is to get the debts cleared out ASAP, then I can build up a savings account.

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