Will paying my current auto loan off increase my credit score?
Derrick W asked:
I will be done paying off my car the summer of 2008, once it’s paid off, will my credit score increase.
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I will be done paying off my car the summer of 2008, once it’s paid off, will my credit score increase.
June 30th, 2009 at 1:03 pm
yes
July 1st, 2009 at 11:19 pm
Yes as long as you continue to make payments on time then your score will improve
July 3rd, 2009 at 10:12 am
Yes as long as you didn’t have any late payments.
July 6th, 2009 at 3:59 pm
Ahhh, heres the tricky thing….
Before you leap and pay it off, call them and ask if there is a penalty for early pay off and if they report negatively to the credit scorers!
Some will report negatively cause you did not pay the loan off according to the terms of the contract, others don’t, so it’s always best to check.
Another route you may wish to take is to pay extra each month, but not so much as to pay it off early, then what they report is that you pay more then the minimum due, this will raise your score as well, and it works on credit cards too.
(I am assuming you were thinking of an early pay off.)
July 9th, 2009 at 7:02 am
Yes, a fully paid installment loan will definitely increase your credit score.
July 10th, 2009 at 1:36 am
To find out specifically what you must do to raise your score, you can order your score report from all three national credit bureaus. In addition to your scoreyou still have to pay to find out your credit score, the three-digit number ranging from 300 to 850 that is the key to your borrowing costs.