Can paying the full amount of a car loan before 5 years help or hurt your credit?

[crcballer55]

Gotta think about it from the creditors end.

They will give a higher rating to someone who pays more interest faithfully, and longer.

That's what makes them a good candidate for loaning money to and the more interest made, the more money in the lenders pocket.

People who pay stuff of early are not good for them because it will decrease the amount of interest they receive.

So it's bad for them, good for you depending if you're more worried about saving money, or having a good credit score.

THIS. Having a high credit score comes at a price.

 

[SneakerProSr.]

When I was a broke *** college student with crazy credit cards I had a high credit score.

Graduated paid them off and canceled one of them.

I haven't paid a bill even kinda late in 5 years and but my score is lower now than then.

**** don't make sense

 

[al audi]

THIS. It's literally a game to get a high credit score so you have to play by their rules if you want to "earn" that 800.

its true....

 

[fdub]

SO I decided to go ahead and pay my car off in full today. I'm curious on where my credit score goes since it is paid off in 2 in the half year in a 5 year loan.

 

[jayhood23]

Nothing to do with the thread but my car will be paid off in June

 

[crcballer55]

SO I decided to go ahead and pay my car off in full today. I'm curious on where my credit score goes since it is paid off in 2 in the half year in a 5 year loan.

It's going to drop. On the bright side, you'll have more money in your pocket over the next 2 1/2 years.

Congrats!

 

[ninjahood]

good move OP.

 

[wade187]

I was curious about this myself. I actually took out a car loan for the same amount this year, and planned on paying it off this summer. I actually had no credit when taking the loan, so paying it off early will leave me with bad credit?

 

[reener]

Can't win them all. Wanna high credit score play their game. Wanna have extra money down the road pay it off and get it over with.

 

[ssjjfar]

It's going to drop. On the bright side, you'll have more money in your pocket over the next 2 1/2 years.

Congrats!

It won't drop