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Posted in Auto Loans
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Kigmart

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Karma, I am financing a vehicle. 5 year period. Will pay now affect my score negatively.

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Top Contributor
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If I understand what you are asking,

You have an auto loan with a 5 year payoff and you want to pay it off now.

First Check with the lender, Ask what the payoff balance would be and what fee's you would be charged for an early payoff.  They charge fees because you would not be paying the interest over time. 

In the long run, you will save money on the interest, but you are also losing the payment history.

Credit scores are based on several factors, Including how well you managed paying off long term loans over time. Those monthly payments raise your scores. Without that monthly payment history, there isn't much to base your scores on, so in effect your scores will stay lower than if you were to make all 60 payments ontime, if nothing else changed in your file.

Hope that helps.

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