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
vessel71

0 Contributions
0 People Helped
is paying off your car loan early a strategy for rebuilding credit?
financing a car

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
5038 Contributions
1131 People Helped

Paying your loan of completely will hurt your score, paying your balance down on your auto loan by a good amount will improve your score.

Top Contributor
1884 Contributions
3670 People Helped

Not knowing the other factors

Helpful to 0 out of 1 people

on your credit report, its hard to say for sure. But in general, Auto loans often carry penalties for early pay off.  Also, by paying off the account you will lose not only an "open loan" on your report, but an advantage to having a mix of loan and credit types on your report.

Closing or paying off loans is not a good strategy for a better credit score.  Lenders want to see that you do make your payments over time and that you will abide by the contract thay you signed.

Good luck

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.