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superradgreen

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Does having a car loan increase your credit score significantly?
Does having a car loan increase your credit score significantly? Is it better to have a continuous car loan being paid on time each month or to completely pay off your car loan in one payment?

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Not significantly, but it does contribute to your score. Revolving lines such as credit cards are worth more for Fico scoring, but it is important to have an installment loan to get points for credit mix. For credit scoring purposes, it is better to leave an auto loan open rather than paying it off and closing it, in fact, if you have no other installment loans reporting to the bureaus and you pay off and close your auto loan it will hurt your scores.

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