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Dazmin89

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My credit score is 564, if I paid off my auto loan early will my credit score go up?

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No, it would actually cause your score to decrease because you would be closing an open line of credit especially if this is your only installment loan. Now if you have several open installment loans the damage may not be as bad. I understand that it doesn't make sense that paying a loan off early would cause a credit score to drop, but that truly is how it goes. To benefit your scores the most, you want to pay the loan down but not off.

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Do you have credit cards? If not, you should have three cards for building credit even if they have to be Secured cards, just make sure that they report to all three bureaus and make sure you do research on cards before applying for them to make sure you have a good chance of getting them so you don't get hard inquiries for nothing.

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