How will paying off my $6,000 car loan affect my credit score?

"I've saved up enough money to pay off the remaining $6,000 on my car loan.

What effect will paying off my loan have on my credit score?"

“When you pay your loan off, it will cause your score to drop just a bit because an open loan is worth more to your credit score than a closed account. Don’t worry—this will only be temporary.
Paying off your loan early means no more monthly payments. It also demonstrates you can pay off installment loans without any issues.”
Eric Schad
Answered on Jun 07, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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