Will paying my current auto loan off increase my credit score?

Question

I will be done paying off my car the summer of 2008, once it's paid off, will my credit score increase.

Answer 1

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.)

Answer 2

1

Answer 3

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RE Will paying my current auto loan off increase my credit score?

I will be done paying off my car the summer of 2008, once it's paid off, will my credit score increase.

Answer 4

The damage has already been done and the late payments will remain on your credit report for 7 years. As they age, they will have less of an effect on your credit score. The way to rebuild your credit score is to always make future payments on time but the process will be slow. The more on time payments that are made, the faster the credit score will increase.

Answer 5

Yes, a fully paid installment loan will definitely increase your credit score.

Answer 6

Well, if u are lookign to improve your credit score, you'll need a mixture. 1 revolving acct, and an installment loan, like a car, PAID ON TIME! credit scores grudually go up though w/ time. it's your history that establishes your credit, not so much as to what you have. if ur able to afford a car loan? then cool. get one and py it ON TIME! EVER TIME!. but if u are jst looking ot jst improve your score? then i say ur best bet is to get a personal loan, DONT USE THE MONEY! , and just py the loan back w/ the money u borrowed.....say py it off in 1-2 yrs, so that the money doesnt burn ur pockets too much. having a loan jst shows banks that they are able to invest in you, and if ur good at pying them back, then banks are MORE inclined to invest MORE into you, say????? a mortgage at a REALLY GOOD RATE :) hope this helps

oh let me add too! credit cards ARE LOANS! they are revolving lines of credit, and to banks they are considered LOANS to you to use, and expect you to py back! - jst food for thought :)

Answer 7

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.

Answer 8

Yes as long as you continue to make payments on time then your score will improve

Answer 9

Yes as long as you didn't have any late payments.

Answer 10

yes