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How will paying off my $6,000 car loan affect my credit score?
"I've saved up enough money to pay off the remaining $6,000 on my car loan.
What effect will paying off my loan have on my credit score?"
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“When you pay your loan off, it will cause your score to drop just a bit because an open loan is worth more to your credit score than a closed account.
Don’t worry—this will only be temporary.
Paying off your loan early means no more monthly payments. It also demonstrates you can pay off installment loans without any issues.”
View full answer
- Gregory R.
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