It depends whether or not you have a long established credit history. If this is one of few loans or credit lines you have ever had then it may not help you. If you have a longer history, then your score should go up. If it where me, save yourself the interest and pay it off early. A bank account that you continually contribute money to is just a good as a car loan. Both are on your report.
If I pay off an auto loan before its maturity date, will this raise my credit score?
Your credit improves after you maintain a debt consistently. If you have had the debt for over 2 years and then pay it off, your credit improves. If you take out a loan and pay it off in 2 months, this will not improve your credit.
Credit is not just about showing you can pay the money back, it also measures how good of a client you will be to the banks. Someone that borrows money longer is a better client.
If I pay off an auto loan before its maturity date, will this raise my credit score?
Yes it should.
If I pay off an auto loan before its maturity date, will this raise my credit score?
you really need to have a consistent payment history for about 2 years before it affects your credit history.. getting a loan and paying it off in a couple of months isn't going to do you any good, except to get rid of a monthly payment..... sorry
If I pay off an auto loan before its maturity date, will this raise my credit score?
it will not raise your score. paying off an installment loan does not help, it actually hurts your score because once you close that account you are going to loose that payment history. I can help raise your score, that is my job. check out this website
www.weteachcredit.com
Great! Thank you for sharing this wonderful article to us. This is really helpful to me especially, my auto title company appreciates this so much.
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