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Posted in Auto Loans
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DCN2JOKER

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How does credit change when a debt is payed off
I was wondering, I have a title loan out, and it is considered 55% of my debt according to this site; if I were to pay the debt in full, how much of a difference would it make for my credit score? I only have one other debt that takes up the other 45%. my scores in the 500s.

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No one can say exactly what the effect would be since everyone's credit profile is different. In general, though, the scoring systems like to see people lowering their debt but not completely paying it off (until payoff is required, of course).

With scores in the 500s, though, you have everything to gain and not much to lose by getting that debt down.

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thanks for answering my question, those answers help give me a perspective of whats to come in my credit rebuilding!

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