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Posted in Auto Loans
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Question By
jasminear21

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would a car dealership paying off your old car loan help build your credit score?
I traded in my old car and they paid off the balance and I then took a new loan out for the new car. I'm wondering if that would help build my credit.

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Helpful to 22 out of 22 people

Yes it will!  Make sure you make all your payments on time.  It may take a few months before your score increases.

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Helpful to 3 out of 3 people

Yes it would

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Helpful to 2 out of 2 people

Yep, I traded in a car, got a new one.  Older one paid off and boom, credit score dropped a lot..   Doesn't make sense cause I never missed a payment on the old vehicle either.  Was always on time and always paid more than the amount due each month.

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will drop!

Helpful to 1 out of 1 people

I am trying to clean my credit up & thought trading in would help to build mine jus got on tonight to see how much i boosted dropped 35 pts!! THE SYSTEM IS WACK even tho i work hard for my community as a nurse i struggle to provide d/t credit because its so hard to build how bout i go to work pay my bills on time mind my business may i have my home loan plz???

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Helpful to 2 out of 4 people

I want to refinance my auto loan if I disagree with the new terms is it considered a inquiry on my credit report

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why does it take so long

Helpful to 1 out of 2 people

Why does it take so long for you credit score to reflect paying off your car?

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Can i

If I have a title loan on a vehicle can I take it to the dealership and they pay it off with the trade in of my vehicles

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Helpful to 1 out of 2 people

yes it will help, it will have you in good standing saying you paid your car off early and on time. 

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Lien on title

If I have a car title loan out on my vehicle can I take it to the dealership and trade it it in and the will pay it off???

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paying off car loan

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would paying off a car loan in full increase my score

Reply by
4jdown

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Helpful to 1 out of 1 people

My credit score went down about 20pt. after I paid off my car that I had for the full 60mo term, I would always recomend keeping the loan for as long as possible to maintain your credit score unless you are planning on taking out a new loan.

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