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Posted in Auto Loans
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bsimmons16

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im curious why my credit went down 21 points because i paid off my auto loan
No missed payments. Paid off at pay off date

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It is typical for scores to go down when you pay off and close a loan, because you are basically taking away part of your active credit profile.

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Shouldn't just from that...

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Are you sure it went down as a result of simply paying off your auto loan?

I've paid off auto loans in advance and have never seen my score drop as a result of that activity. If anything your score should go up slightly, although probably not much. Paying off secured loans don't have anywhere near the impact of paying off unsecure loans (e.g. Credit cards).

When I paid off my first car my scores went up about 5-6pts on average. I've seen 40+ pt swings from paying off reported credit card balances.

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