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Posted in Auto Loans
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MstangBlue

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Will trading in my car for a new one hurt my score as loan is not paid off yet on this one?

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Your scores will likely decrease, but that happens most of the time when you open new accounts. You will be going from a lower utilized loan to a fully utilized loan, you will be adding more debt, getting hard inquiries and lowering the average age of your accounts. All in all, it is something that you will recover from over time and getting the new loan paid down. I would not worry about it if you want to get a new car. The only thing that you really should worry about is that you work with a reputable dealer that will pay off your existing loan promptly. Dealing with a less than reputable dealer that doesn't get the loan paid off in time could lead to late/missed payments on your credit report.

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