Dear Terry,
What happens to one’s credit score if one takes an auto loan for five years and pays it off within six months after getting the car? I have an excellent credit score.
— Omoniyi
Dear Omoniyi,
There should be no negative consequences to your credit score for paying off a loan early. If you already have excellent credit, it’s not likely to boost your score. But for someone who has less-than-perfect credit, an early payoff might help.
| Here are this week’s reader questions: | ||||||||
|
If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car — sign up for Bankrate’s new weekend Car & Money newsletter.