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Posted in Auto Loans
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Question By
Dinapsl

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0 People Helped
Will paying off my car early hurt my credit
I currently owe $3,000 on a car with trade in value
Of $2,000. So I'm upside down if I get a newer car.
My payments are super affordable $150 a month but I have about 20 months left to pay it off. I was going to try and double the payments and pay it off in 10 months and sell it and put that money down for a newer car. Everything I'm reading is saying that if I pay off my car early that it will lower my credit score by a lot ! I can't afford to lose anymore credit!
My score is 608 at best
What is my best option!?

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Top Contributor
25 Contributions
48 People Helped

Tough

Paying off your car loan will surely close the account and could reduce your "average age of credit lines" and total credit. 

If you're going to get another car loan, you could try financing the new car through the same company, but your credit score will likely still take a small dip.

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