Should I pay off my car loan to build more credit if my score is 810?

"I have the money to pay off a car, but I've read that keeping the loan is better for your credit overtime.

My credit score is 810.

What's the best decision I can make?"

Answer
“While paying off your car loan can drop your score temporarily (because you’ll have fewer outstanding loans), it’s probably a good move in the long run.
You won’t have to pay extra interest. You’ll also save the money you would have paid toward the loan every month.
Conversely, keeping the loan can help keep your credit score up. However, this really isn’t as big of a bonus unless you’re planning on making another large purchase, such as a home.
Because you already have a great credit score, you should probably go ahead and pay off the loan. It shouldn’t hurt your credit that much.”
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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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