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
Colina022273

0 Contributions
0 People Helped
How many points will my score increase if a pay off a carloan

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
7816 Contributions
1496 People Helped

Helpful to 1 out of 1 people

Usually when you pay off and close a loan you can expect score decreases, not increases. What happens depends most on the rest of your credit profile (how many other open loans that you have). To benefit your scores the most you want to pay a loan way down, but not off. Of course in order for the best financial benefit, you would want to pay it off and save interest as long as your loan is set up that way.

Top Contributor
621 Contributions
261 People Helped

It may actually drop on some scoring models.  Depending on debt to income, how many of what other types of accounts you have (diversity in credit) these all have a factor.  If you are trying to reduce debt to income for a home loan this might help with their scoring models even if it drops it here in the Vantage model.

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.