Q: I paid off my car loan early, thinking it'd help my score, but nothing changed. Is this an error?
A: Although it may feel good to pay off a car loan early, it doesn't necessarily impact your score. In fact, an open credit account in good standing may actually do more for your score.
That open account demonstrates to lenders that you're handling credit wisely, while a closed account
only shows good payment behavior in the past.
Now that you know more about credit scores, sign up for TransUnion Credit Monitoring today and receive your credit report & score.