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wrvpipp

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Pay auto loan in full or continue making payments until trade in.
I currently have 4 credit cards (zero late payments and approximately 20% utilization), one student loan, and an auto loan, both in good standing. That makes 6 open accounts, 4 credit cards and 2 installment loans. I plan on trading in my car and applying for a small loan on a new car. My current credit score is is 650 and rising. I have the ability to pay my auto loan in full and close it right now but won't be purchasing a new car until October. I'd like to trade the old car in with nothing owed on it but I'm worried that closing that account now will cause my score to drop and hurt my chances at a better rate for the new loan. So do I continue making payments until the new car arrives or pay it in full now and avoid the extra interest? Also, my current auto loan is my newest account. Closing it would increase my average account age but decrease the number of total accounts and diversity.

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