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karmazrevenge

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Will paying off my two vehicle loans help or hurt my credit?
In the next few months I will be able to clear up over $1000 a month in payments because the two vehicles we own will be paid off. I know this will help my debt to income ratio, but I've heard a lot of people say their credit score went down once they paid off debt. I really can't afford to let it drop...any advice?

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You can speak to your lenders and see if they will accept pre-payments. Then you pay off all but $1, to which that $1 will keep the loan open. Make sure that since you prepayed nearly all payments, that they leave the loan open with the $1 due on the date that the loan would normally have its last payment (not another payment due next month).

Also, since only $1 is left on the loan, interest can only accumulate against that little dollar.

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