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Posted in Auto Loans
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Question By
MlleT

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Should I close auto loans that have zero balance and paid in full?

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If the account has a zero balance and is reported as paid in full, it is actually already a closed account.   The comments of "closed" on an account is routinely something reported by the creditor if this is the type of reporting they make.  The term "closed" on an account has no bearing on the credit as the measurement for an auto loan is the amount owed as compared to the original balance.   You had already gotten all the good from the account you could over time and you should hvae already taken the negative hit when it was paid off.   This can remain on your report for 7-10 years.   Don't concern yourself with the term "closed" in a comment.   In fact, this comment can cause some creditors to look more closely at this when you apply for credit as it will report as  "Account with Comment"

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