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Posted in Auto Loans
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Marisr15

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Is it true that if I pay off my car loan within 1 year my credit score will significantly drop?

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"When" you pay it off have bears no relevance to your scores, what might make your score drop "whenever" you pay off a installment loan might it be 12 months into it or 3 years or full term, is you lose the scoring benefit from Credit Type Mixture, if it didn't? Then maybe because you still have other open installment loan, like mortgage or personal loan. 

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I hope people don't let credit score alone affecting their decisions to pay it off early not, in some circumstances, it might well worth the scoring drop, to pay much less interest. For me at my current credit/financial situation? I wouldn't mind take 30 point drop to save me 3k in interest.

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