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Posted in Auto Loans
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Question By
tommyb123

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will paying off a car loan increase my credit

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not really.

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Paying off the loan will lower your available credit.  that will l;ower your score. 

I suggest that just before paying off the loan, you apply for a new credit card to offset the loss to your available credit.

An auto loan does help diversify your report though in a way that a credit card doesn't, but a new credit card can help  with your overall file. 

Good luck

Reply by
SDVet

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Would it be better to pay off most of your auto loan, say you owed 1400, pay off 13000 and refinance for the 1000 to just make payments $100 on the smaller $1000 Balance, in order to keep the good credit going for a longer period?

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I PAY OFF MY CAR LOAN AND MY CREDIT SCORES GO DOWN 41 POINTS BECAUSE WAS THE OLDER CREDIT LINE

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