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Posted in Auto Loans
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number1stunner

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Paid off a $12k auto loan
I have two auto loans on my credit report and I just paid one off early to the tune of $12k - how will this impact my score which was right at 700 before I paid it off.

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It may not change at all

or you could actually see a dip in your score.

Credit scores are not about how quickly you pay off a loan.  That loan will move to "Closed/Paid" status.  But shouldn't really effect your score much.

Credit Scores are about the amount of open available credit vs how much credit you use and how well you manage to pay those accounts on a monthy basis.

Paying off a loan will help some in your overall scoring but don't expect to see a major jump in your score because of it. You'll now have one less open account in the equation.

Good luck

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