I'm getting ready next month to pay off a car loan ($1,500)-when will it show up on my credit reoprt as paid?

Question

My credit rating is 653-will it raise my credit rating after paying it off? I want to get another car

Answer 1

It depends on how long you have had the loan for. Is it 1500.00 remaining, or is that how much you financed? It will help you a little, because it will lower your debt to income ratio when you no longer have that open loan. Just make sure you keep every single loan you ever have open at least 6 months or it will not help your credit at all. And of course make all of your monthly payments on time. Good Luck.

Answer 2

After you pay off your loan, it takes about a month for the bank/lender to mail you the title.  After month #2, this should reflect on your credit report.

Note that you can get a free copy of your credit report from the three major credit bureaus each year.

Answer 3

If you are paying your car off and getting the title for the vehicle you can contact all 3 credit bureaus and let them know and they will have you to fax or mail them the proof showing that it is paid in full and also let them know that you need and immediate update on your credit score that is something that you have to request and if you do not they will not do it until the end of the month.  Enjoy your new ride, I hope its not a big truck because the cost of gas is crazzzzy.

Answer 4

Auto finance is what I do for a living and as long as you have made at least 12 payments as agreed paying this loan off will raise you score but it will take about 30 days for the credit bureaus to update your information.