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Posted in Auto Loans
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DharaPandya

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What if pay off loan early
If I pay car loan early then what wil be impact on credit score

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Score drop

I can only speak from my own experience. I bought a new car, so for a while I actually had three car loans listed on my report with the total from all three, NO effect on score for two months,, but as soon as the loan showed closed with no missed payments etc, and the amount came off the total of loans my score DROPPED 12 points with no other changes to report.  I have been told it's because that was my oldest loan. So, you can only conclude that the credit score agency is going to ding you for not paying their customers ALL of the interest they feel they have coming. 

From a credit score perspective only, there is really no upside to paying off loans early.

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