“When you first take out a loan, it’ll probably result in a temporary drop to your credit score. If you make your payments on time, though, paying off a car loan can help your credit.
However, if you’ve had your loan for a while and have been consistent with your payments, you’ve been adding to your credit history, which will help your score. But once you pay off the loan, you may see a small drop in your credit score since you won’t be actively making payments anymore.