How much does your credit score increase for paying off a car?
I totaled my car, which the insurance paid most of but since I didn’t have GAP insurance, I ended up paying about $800. What I want to know, is if the contract was for five years and the car is now paid off in 2yrs, will my credit score go up significantly? Most importantly, how long does it take to reflect on your credit score? Thanks in advance.
If you don’t have any negative action going on in your credit file to wash it out, maybe 10 or 20 points. Depends on what else is going on in your history.
First, I am no expert no credit, but I do know a few things. Calling on of the three credit bureaus would likely yield no accurate information. As to whether your credit would rise or not; your credit would definitely rise. One of the aspects of a credit score is your debt to overall credit ratio. This has more to do with use of credit lines and credit cards, but loans also play apart. Basically, the more credit you have and less debt you have, the stronger your ratio and therefor the better your credit rating.
As for how fast. That depends on the each credit bureaus. Some will update within a month and others might take longer. I would imagine however, that any effect would be evident with a fiscal quarter or two.
Again, if you want more accurate and detailed information I would contact one or all of the three credit bureaus for more information.
Equifax
P.O. Box 740241
Atlanta, GA 30374
1-800-685-1111
Experian
P.O. Box 2002
Allen, TX 75013
1 888 397 3742
TransUnion
P.O. Box 1000
Chester, PA 19022
1-800-888-4213
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – creditreport.undonet.com
This article provides some tips and pages for you that may help http://www.ehow.com/how_4804639_credit-monitoring.html