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
slicknbabydoll

1 Contribution
7 People Helped
I have paid off my truck how will that affect my credit score

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-7 of 7Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
1 Contribution
24 People Helped
Most Helpful Response

Helpful to 24 out of 26 people

Your credit score is based off of how you pay your bills, not how quickly you can pay them off. The accounts and loans you have open with no issues  and paying them on time the higher your score will go. Also works the same with credit cards. Never pay it off completely. It goes off more of how many bills you pay on time rather than getting them paid off quicker.

Reply by
BellaButterfly

1 Contribution
2 People Helped
Helpful to 2 out of 6 people

Thank you for your response! Very, very helpful! Makes sense in understanding credit scores.

2 Contributions
3 People Helped

What?

Helpful to 3 out of 4 people

So the only way to better your score is to pay the interest on your current accounts? Sounds like a raw deal is you are able to pay stuff off early. 

Reply by
Mgreen1493

2 Contributions
3 People Helped
Helpful to 0 out of 1 people

Enter Your Reply *if

2 Contributions
10 People Helped

It dropped my score!!

Helpful to 10 out of 14 people

I paid off my auto loan back in December and my score dropped 5 points!! That was paying it off more than a year early!! I don't get how the scoring on all this works, I run the simulators but all I can do is drop my score cuz I don't do anything 'wrong' in the first place (I pay all my bills, on time, every month and never exceed my limits but all the simulations I run just drop my score - I keep my balances well under 30%, pay off at least once a year and as I said, always pay on time..)

2 Contributions
6 People Helped

Longest open account?

Helpful to 5 out of 6 people

What is your longest open account? I use to pay off my loans really early and was told that lenders like to see long term stability on loans.

Reply by
slicknbabydoll

1 Contribution
7 People Helped
Helpful to 7 out of 11 people

I only had 19 months left on a 72 month loan I think it wa.

1 Contribution
0 People Helped

Loan

I have had my current auto loan for 5 years now. Owe $4800 - I am going to trade it in and it will be paid off and get a new car with a new loan for $22K. Will this lower my score, help my score or keep it the same? Anyone have any experience with this? I am trying to get my 570 score above a 580 by January so I can buy a home. I am hoping this doesnt drop my score. 

Reply by
holygotchas

1 Contribution
0 People Helped

Im about to buy a home too, you do not want new lines of credit before you buy a house, the older your credit the better. Age of credit is determined by the start dates of all credit lines , its the average of those. If you trade in your car you have now closed a line of credit and opened a new one, also creating new debt with the loan. You would be better keeping your current car, make larger payments on it but avoid paying it off until after you close on your home, then after a few months with your new home go trade it in. If your trying to gain points on credit, pay down a much debt as you can. If you can get collections removed from report do it. I called lexington law and for $100 a month they will get some things removed if your situation is possible. One or 2 items removed from your credit report that was a collections account is 10 points. Late payments hurt really bad too.

1 Contribution
2 People Helped

Helpful to 2 out of 7 people

Sets your credit score at min.700

2 Contributions
1 Person Helped

Will it help my score a lot ?

Helpful to 1 out of 8 people

My credit score is 568. I owe 19k on a 2013 dodge journey if I pay it off early will my credit increase a lot?

Reply by
DylanBTheManager

3 Contributions
0 People Helped

it will bring down your score quite a bit because the account is now closed, and the debt is paid off, so that credit line is closed along with the years the credit line was open if that makes sense. 

Results 1-7 of 7Results 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.