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So if you're about to pay off a large loan, your best bet is to focus on the other steps you can take to keep your credit score in the best possible shape. Alert: highest cash back card we've seen ...
Paying off your car loan early, if you can afford it, seems like a no-brainer then. ... Perhaps you’re two years into the loan, you’ve got a higher-paying job, and your credit score is in ...
Having a diverse mix of credit accounts like a car loan and one or two credit cards that you use and pay off helps you score well in this credit score component. New credit (10 percent).
Paying off your car early eliminates your auto loan from the equation. Your DTI will naturally be lower, which opens you up for other forms of credit. ... Don’t let the fear of your credit score ...
When you pay it off, you no longer have that channel through which to bolster your credit score. Total payoff of your auto loan also diminishes your credit mix, another factor behind your credit ...
4. Improve your credit score. Paying off debt decreases your credit utilization ratio, which is the amount of debt you owe relative to your overall available credit. Most lenders and issuers use ...
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