I own my car outright and my husbands car has 4 more payments before we own it outright. The payments are nearly 0 a month. How does this affect a credit score? Does the loan show as satisfied on his credit report once they record the final payment?
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{ 5 comments… read them below or add one }
Auto finance is what I do for a living and the account should show as closed with a $0 balance.
Yes his scores will go up.
It will also show the amount that he borrowed, term of loan, payment amount and payment history.
Pay no attention to Haybulldog, your husbands score will not start to drop if he doe’s not run out and borrow more money.
Credit scores are based 90% on the last 24-months of activity.
once paid the auto loans will show as "paid" on your credit reports. your score may not increase much if at all, assuming you’ve paid your payments on time all along!
regardless having "paid" autos is a GOOD thing!!
oh…and it might take a month or two for the loan to show as paid on your bureau report so don’t sweat it if it doesn’t show right away!
It’ll look great on the Credit score. But, If you don’t go out an borrow more money it will start falling. You have to keep borrowing money to keep the score up. Keep checking your credit score and see.
So Spifiman, if he never goes out and borrows money. His score will never drop?
The only thing obsessing with the I love debt score will get you is in debt.
Of course the bankers and their loyal followers are gonna tell you different.
Pay as you go and live on less than you make and you will win with money.
No payments = cash in the bank.
Debt free is the way to be!
It will make you look good for paying off the loan. That’s what you want. It will show the original loan amount, the amount you paid toward the debt and the 0 balance and creditors loooove that. Good job!
Hello to you, with your Credit..revolving Credit like a Credit card is what the Banks look at. why…it will tell them that you can make payments over a period of time, on time or paid off early . If the loan was for more than 3 years on a car then this will help the Credit go up. I have a personnel Friend who had to go Bankrupt. in 04. He went for a loan on the House 3 month ago and was worried about the credit.He has a House and a Credit card, No car payment, or any thing else. By paying on the House which is a secure Loan and on the Card which is an unsecured Loan ,on time after 3 years He got the loan and His credit was at (679)…so yes by paying your cars off will help BUT you have to be in dept to get Good Credit. Also Don’t have people pull up your Credit allot..this Decrees your score also. Most Companies report by the Quarter and this is when you will see it on your Credit.