Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
IWantMyGoodCreditBack

0 Contributions
0 People Helped
How long should I take to pay off a 14K auto loan to improve my credit?
I have heard 12 months + to help raising my score. I can pay it off sooner but want to take as much time to benefit my score as possible.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
1884 Contributions
3681 People Helped

Auto and personal loan balances

have a negative impact on your score until you have paid back 50%+ of the principle. 

If you can afford to make large payments toward the principle each month, do so until you get the balance to below 50%. Be sure to make Separate payments noted as "Principle only" in addition to the regular monthly payment.    Be sure to check with the lender, many have penalties for early pay offs.

Good luck   

Top Contributor
5038 Contributions
1136 People Helped

The answer already given was good, but let me add, paying off and closing loans actually HURTS your credit. As already advised, get the loan paid down but not off for the best results regarding credit scores.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.