Q: I paid off my auto loan early, thinking it’d help my score, but nothing changed. Is this an error?
A: Although it may feel good to pay off your auto 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 a FREE credit score.