paying off car loan early

Submitted by Anonymous (not verified) on Wed, 01/27/2010 - 22:04
Forums

72 month car loan of 650.00
i've been paying twice the amount since i bought the car in summer 09'
will paying this off in 36 months instead of 72 help my credit and score, or hurt me and my credit/SCORE????????????????????????????

Paying early will always help. As long as the note has long enough to get on your report (typically 6 months or longer). Looks good to a creditor to see that you have a 72 month note, and it is listed as paid in full within 36 months....

Thu, 01/28/2010 - 01:32 Permalink

Hi Guest

Paying off your car loan earlier than it is due may help boost your score. It will decrease the money that you owe and hence improve your score. However, there are some companies who may charge a penalty if you pay off an auto loan early.

Thu, 01/28/2010 - 09:28 Permalink

I should definitely have a positive impact on your credit report as well as your score. And it will look good to lenders who you are seeking credit from in the future also.

Thu, 01/28/2010 - 09:52 Permalink

Actually having this loan that you pay on time is actually boosting your credit history. So now your score is helped but later when you have no loan, it will not help. But you are saving tons of money,so I say excellent plan.

Fri, 01/29/2010 - 11:14 Permalink