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 Credit Scores
Profile Image

Question By
Whooty123

0 Contributions
0 People Helped
I have a poor score right now. do i pay my car or personal loan off. will this help my score?

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
3672 People Helped
Most Helpful Response

Take a closer look at your Credit Report

Helpful to 1 out of 1 people

There may be other negitive things on your credit report.  You only mention an auto loan and a personal loan. if those payments are on time then your score is reflecting something else.

Get free copies of your credit report at   AnnualCreditReport .com  once a year.  Go over them and take a closer look to see whats pulling down yor score. Often times it can be cleared up pretty quickly. 

If you don't find anythingnegitive on your report then it may just be a thin file, You may need to open a new credit card or two to help your score. 

Good luck 

Top Contributor
65 Contributions
153 People Helped

Helpful to 0 out of 1 people

No.  Though if you can pay it off, why wouldn't you?  Only reason I can think of is if it's at something like 1% APR or less, where it'd be better to hold on to the money.

Refinancing car loans gives you a hard inquiry, missing a payment will lower your score.  Paying it off won't raise your score.  Don't know the specifics of that personal loan, but a car loan would be an installment loan.  Paying it off early could actually lower your score in the long run, as it's one less line of credit.  

That being said, if you can pay it off, why wouldn't you?  Is the car loan APR % lower than the inflation rate?  Personal loan subsidized?  There are better ways to improve your score vs throwing money away.  Open another line of revolving credit (that doesn't have an annual fee).

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.