Marcov719 wrote:Last week I paid my car loan two years early because I sold the car and made some profit. However, after doing some research some claimed that paying it off too early brings your score down. I only establish about 9 months payment history with my credit union. Should I be worried? I thought paying it off early was a good thing? I'm looking to get another auto loan in the next few months.
It is possible, since that TL will now report as paid-in-full/closed vs paying as agreed.
What I've done to show a good mix of credit types on my CRs is, of course having CCs, but also taking out a personal loan from the CU and having them use the loan amount to make the pmts (directly from savings), I also asked for a small motorcycle loan, so as to have a different type of TL reporting. The loan was only 1k and the bike was only 3500. Both of which I could (and very much want to PIF), but I know letting them sit and report for a while will be a much better choice for my scores.