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Posted in Auto Loans
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rcellis7

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PAying off auto loan
My credit score is a 609. Im debating paying off my auto loan of 12000. Would this be beneficial in my attempts to raise my credit to a 630

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Usually whenever you pay off and close a loan your scores will DECREASE, not increase. But it really depends on the rest of your overall credit profile. Figure the more accounts that you have, the less damage when closing one, but if you only have a couple of open accounts then the damage of closing one can be significant. For the best FICO scoring, you want to pay loans down by a great amount, but not pay completely off or close them.

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payoff my Auto loan

I have ~650 credit score (creditkarma). 2 months back opened Auto loan account.

as I have less credit histroy got higher intrest rate 5.94% and dont want to run any more credit runs on my account. because which is hurting my creditscore every time. 

But i would like to increse my credit score and at the same time i want to save intest money. 

So i am planing to payoff 90% of my loan amount and want to hold 10% of loan amount.   

is this help me in incresing the creditscore? 

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