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czfuller

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open account in Nov-- made 2 payments -- will paying off have negative or positive affects

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In most cases when you pay off and close a loan your scores will be penalized, because open loans and active credit cards are what keep a credit profile strong. Closed loans do not report payments made on time because they are closed. For best scoring scenarios, you should pay a loan down but not off. However, you will pay more interest on the loan by doing this, but if it helps your credit it will save you money on your next loan. All in all, the consumer is screwed no matter what they do.

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