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Posted in Auto Loans
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landens12mommy

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Car Loan Paid Off, Credit Score Lowered, Why?
I had a car loan & thinking it would build my credit, I paid it off, instead it lowered it, why?

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Paying off car loan.......

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Hello. I wanted to do the same thing to have more money available each month but I was told by a mortgage lender, it would have the opposite affect and lower my scores. The reason she said it would is because it was an account in good standing with on time payments and I have not been late once. She said it is a ding to your scores when you close any account, especially one in good standing.

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How terrible, can we ever ge ahead??? Was looking forward to a higher credit rating!!!

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