auto

What if I pay off my car loan early?

Tara Baukus MelloQuestionDear Driving for Dollars,
How will paying off my car loan affect my credit score? What if I pay it off early? Does that make a difference?
-- Michael

AnswerDear Michael,
It's a common misconception that paying off a car loan affects your credit score. In fact, it does not affect your credit score at all, no matter how early you pay it off. Your credit score is only affected, and then in a negative way, if you are late or miss car payments. When your loan is paid off, it just shows up as paid on your credit report.

Ask the adviser

If you have a car question, e-mail it to us at Driving for Dollars. Read more Driving for Dollars columns and Bankrate auto stories.
 

Bankrate's content, including the guidance of its advice-and-expert columns and this Web site, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this Web site is governed by Bankrate's Terms of Use.

News alert Create a news alert for "auto"

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
 

A little research could save you BIG on interest.

Don't have time? Our rate-tracker tool saves you time and money. Delivered Thursdays.
 
advertisement
Partner Center
advertisement

Blog

Tara Baukus Mello

Kickin’ gas with Drive Electric Week

If you've been thinking about kicking gas with an electric car, then check out the Drive Electric Week event.  ... Read more


Connect with us