hyundairacer58

It's gotta look good considering you honored the loan but I've heard that your credit score starts going down because now it stops being consistent. Does anybody have experience with this situation?

optimoprime

i paid off my car a year early never missed a payment and always paid over. that bank wouldnt even give me another loan when i asked for it.....bastards. yes i had school debt but i had school debt when they gave me the loan in the first place.

bdiggy

Since it's based on your credit overall, i'd say as long as you have a frequently used credit and debit card, that your score will be fine as long as you're on top of the payments.

Tibbi

The thing about that being, and from what I have come to understand it's actually more about the size of the line of credit, and currently open lines. Paying of a car early is a BIG plus, especially if you bought new. When we bought the 2007 Accent I as actually 2 payments ahead by the eight month in, sadly thought at the time of the accident I owed more than what was payed new even though. So after I payed it off in total my credit was crazy happy, because I had basically a 13 thousand dollar line of credit payed over four years early. Now if I were in that same situation and in foreclosure the 13k line would look like pennies compared to the 150k line that's crap, and the plus that the payoff provided would have provided would pale and might not boost but a point or two versus the major jump I actually saw. Now if the car is you only line of credit, meaning you have no credit or debit cards or other loans, then you really need to open a new line before closing that one, say find a nice unsecured card with with low if any annual payments. Then just stash it away and use it only for gass or somwthing and right them a check for the full amount each month. Basically just keep it alive and in superior standing.



I am assuming this was the GC, so you're probably talking a 20-25k loan. If you are paying it off early that is VERY good if it's your biggest debt. Just make sure that if this is you only credit, or you haven othing but sid 1k lines, that you get another form of credit before cutting this off. And decent sized credit too (not too big, you want to keep it manageable) and NEVER EVER carry and balance into the next month.







Or something like that.