Question about increasing credit score. Does paying off car note sooner increase credit score?

Sure

Wow! I cannot believe all the bad answers your question got!

Paying off an installment loan early will not increase your score. You build credit with installment loans as you make the payments. Since you've paid this loan for 2 years, your score already includes this history. If you can afford to pay it off, do so. You will save a fortune in interest. Think of your pocketbook and don't worry about the score.

Credit card debt is counted differently in your score. Paying off credit card balances is the fastest way to get a quick boost to your score.

And while paying off the car loan early will improve your debt to income ratio, that isn't part of your score calculation. In fact, you income has no impact on your credit score.

Total debt does not effect your credit score as much as people think. Infact, the way credit scores are strcutured you basically have to be in debt to get a decent credit score these days. I think you may see a little pop in your score, but dont expect it go up all that much. I was 20k in credit card debt with a perfect payment history and credit score 707. I sold a life insurance policy to pay it off and my score did not really change much at all. Your payment history is MUCH more important then your total debt.

Paying your bills in advance normally has little or no impact on your credit score. What counts is the delay needed between the time your receive a bill and the time you pay it, for all your bills.

The credit score calculations are very complex but you should understand that paying one bill in less than 30 days and another one in less than 90 days will consider that you pay in 90 days, not 60.

It would greatly improve your score.

After 6 months of having that loan, the history has been set on your report.

Please note that installment loans (car note), do not weight as heavily as revolving debt (credit cards).

If you owe balances on credit cards - make sure you pay those off first - they can destroy your credit rating.

Also please note: Everyone needs to have 6 month's worth of living expenses put away in a savings or money market.

Do not pay off this loan unless you have this.

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Paying it sooner will improve your score after it is paid but you will not get extra points for paying extra.

It will improve your score because the percent of your income going to payments will go down.