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I have a car loan question?

If a person gets a 4 year car loan and pays in off in 24-30 months does that make their credit worse? Sounds crazy to me but someone told me this and this person is usually pretty smart.

2 Comments

  1. Alice says:

    I don’t see how that would happen. Sometimes there is a penalty for pre-payment (to make up for the lost interest), but lots of loans don’t even have that. We paid off at least three car loans early, and it was all good.

  2. Randy says:

    Why would that hurt your credit score? If you only kept it 5 months, that would hurt. But if you can demonstrate good payment history for the 24-30 months, that should boost you up.

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