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Posted in Auto Loans
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Question By
jbmccoy2002

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0 People Helped
Why am I taking a hit for paying off/closing my car loan?
I paid off my car loan so the account was closed.
Does anyone know why my credit rating is taking a hit ( down almost 20 points ) for paying off the car loan?

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Top Contributor
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Because you've now lost that available credit, and you've also lost an open good account.  It's crazy, but that's how it works.  Remember how your score is calculated:  35% payment history, 30% utilization (that is one area where closing accounts hurts); 15% is age of accounts (another hit for you on the closed account); 10% is types of credit and 10% is inquiries.  Hope this helps!

Reply by
marileta

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Enter Your Reply I have no control over nissan for closing a paid account.

The lease should have been turned ito the new lease.

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