Credit Score Car Loan
Does paying off a car loan help your credit score?
I know it’s not revolving credit… but i have a hard time believing it will not do anything to my credit score. It seems to me it shows financial responsiblity. Correct me if I’m wrong, though… grab 10 points. Thanks in advance gents and ladies.
Elmer Gentry is correct…it won’t help and it won’t hurt. The important factor that is considered in your credit rating is whether or not you make your payments timely, no late payments. Unfortunately it does not improve your score if you pay off an installment loan in a shorter time than the term of the loan, for instance paying off a car with a term of 36 monthly payments in 12 months doesn’t affect your credit score.