Personal Finance
Loans
Improving Your Credit Rating
Money Management

Does paying off a car loan within a couple of months raise your credit score?

495051

Top Answer
User Avatar
Wiki User
2005-11-08 15:43:09
2005-11-08 15:43:09

No. Paying off an installment loan early causes no increase in your score. Installment loans are opened for a set amount, with terms of repayment at a set amount. This is what (ideally) both the lender and credit scoring software are looking to see: That you understand this concept and will pay the loan back over time, on-time. That translates to no appreciable benefit for paying early. However, it is (sometimes) possible to reap monetary benefits. Most installment loans are fixed rate loans. You borrow $X at X% and will pay back the full amount regardless of when you pay. But, if you happen to obtain a compounding interest installment loan (similar to a mortgage loan), there may be significant savings in paying off early. So, while this wouldn't help your credit score in any way, it might save you some $, if you have that specific type of loan. You should be able to find out by reading your loan documents or calling your lender. You may also have a pre-payment penalty. That's another good reason to read your loan docs thoroughly.

1
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0

Related Questions

User Avatar

within a couple of months.......

User Avatar

That depends on how much your paying. If your just paying the minimum monthly payment the it won't go up much. If you pay the full balances within 6 months then it will go up much higher because you will have no debt

User Avatar

Information about paying off credit cards can be found on sites that deal with credit problems. There you can find places to go to to help pay off your credit card debt within your budget.

User Avatar

It will, as long as the collection's date of last activity is within the last 6 months. Paying a collection resets the date of last activity and may wind up hurting your credit score. It is better to have an old collection with a balance than a new collection without a balance.

User Avatar

NO. If you have bad credit, it will only be erased if you make it better. Paying bills on time, paying more than is due on payments and staying within your spending budget is a way to build your bad credit into good credit.

User Avatar

After a miscarriage the period usually comes back within 2 months.

User Avatar

Not always. Paying a collection refreshes the date of last activity. The FICO algorithm considers the last 6 months of activity to be the most important which means that it has the most impact on a credit score. Paying an old collection puts that collection back within that 6 month period and lowers your credit score on many occasions. The rule of thumb is Pay collections which are active within the last 6 months and do not pay collections which have been inactive for over 2 years. Use your best judgement for everything in between.

User Avatar

A finch's memory span is within a couple of months.

User Avatar

He grew out of his new shoes within a couple of months

User Avatar

There are no companies that give extra credit after three months. First of all, credit cannot be associated with credit cards. Second of all, if one is referring to rewards, then most extra bonus rewards come from purchases within the first 3 months, not after.

User Avatar

Usually from 6 months to a year. You can get a temporary work visa within a couple of months though.

User Avatar

The juices are best used within a couple days. If that isn't going to happen, freeze them as soon as possible and use them within a couple months.

User Avatar

The deferral option itself will not have a significant effect. The debt to credit ratio that might be incurred during the time period, will definitely change a credit score. Therefore, deferred accounts can have a negative impact on the CR.

User Avatar

You are entitled to a free copy of your credit report once a year. But you may also receive your credit report for free if you were denied credit or employment within the last 2 months.

User Avatar

Dalmatians usually develop spots soon after birth. I believe within the first couple of months.

User Avatar

According to our tradition, it was built within a couple of months, starting from the eleventh of Tishrei 2448 (1312 BCE).

User Avatar

Usually within 45 days. It depends on when the company reports to the credit bureau. However if the company does not subscribe to one of the three major credit reporting agencies (TransUnion, Experian, Equifax) or their affiliate bureaus it will not affect your credit at all.

User Avatar

One can improve their credit by paying bills on time, keep your credit card balances low, and only apply for credit when it is absolutely necessary. One can also negotiate with creditors for a resolution that is acceptable for both sides and within ones financial means.

User Avatar

YES! Before me and my husband got married, we were going to buy a house. I put him on my credit cards, and in a few months, his credit was just as good as mine. We were able to buy our house within 6 months of adding him. I hope this helps you out. Good luck!!

User Avatar

Assuming that one has already applied for a PayPal Buyer Credit the only thing to do in order actually use this PayPal Buyer Credit is to select PayPal as paying method from within for example eBay. Next one has to log-in to PayPal and choose the PayPal Buyer Credit as payment option within PayPal.

User Avatar

The Credit Center at Home Depot have different credit card options for their store. If these cards are used the biggest advantage is that no interest will be charged if the item is paid in full within six months.

User Avatar

Every credit company and lender is required to repost to the credit bureaus monthly so it will show a zero balance within a month of paying it off but it will not be completely off you credit report. It will still show the company and original balance of the loan but it will show that the balance is at zero and when it was paid off.

User Avatar

I just got a ticket a couple months ago for parking within 15 feet.

User Avatar

The Easiest way to get out of the Navy is suicidal thoughts i repeat thoughts not actions, the navy doesnt want blood on their hands Ive seen it a couple times, people get out within a couple of months within enlisting You can get out of going into the navy by not enlisting.


Copyright ยฉ 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.