Furthermore, when your loan ends, you’ll have less credit overall. Credit bureaus actually determine your score by how you’re managing debt, not paying off debt. Keep in mind that this drop is temporary—your credit score should go back to pre-payoff levels in just a few months.
So how do you decide when to pay off your car loan? It depends on your situation:
When you should pay off your car loan early
When you shouldn’t pay off your car loan early