Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
JCorey88

0 Contributions
0 People Helped
What can I do to improve my credit with my car loan? Pay it off now? or keep making payments?
I have never been late on my car payment.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
5038 Contributions
1131 People Helped

Paying off and closing the loan will most likely result in a score decrease, so that is something you probably don't want to do if you are concerned about your credit scores. The best action you could take to increase your scores would be to pay the loan down, but not off.

Top Contributor
7347 Contributions
3806 People Helped

I just bought a car and will soon be getting an additional pension pay-out so my goal is to pay the car off in two years instead of 6.  Sure, I could put the extra money in savings but savings accounts don't pay interest that is more than the loan interest.  So, by paying the car off sooner, I don't pay that interest and save even more in the long run.  If that makes my score drop a bit, so what? That will be temporary.  I won't be buying anything substantial soon, so it won't make a big difference to me.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.