Will paying off my loan early hurt my credit scores?

[@JaMar80s]

Geez laweez.. I've learned soooo much from your channel!! 📚 You definitely have a talent for teaching what might be difficult for most to understand, in a simple and effective way🤗 Thank you for all you do for us viewers!! And for the free ebook!!!!

[@KelvinMcNeil]

You’re welcome Jacqueline! Thanks for the positive feedback. I truly enjoy sharing information.

[@layparisss]

Yes , but only temporarily. I know , I just paid mine off early few months ago. Now my scores went back up.

[@KelvinMcNeil]

I cover 3 different scenarios in this video. The question here is should you do it now or wait based on each scenario. 😉

[@KelvinMcNeil]

But congratulations on paying it off! It feels good 🥳

[@layparisss]

@@KelvinMcNeil yes it does lol

[@pedorseyiv2426]

I paid ALL mine off one time. They closed all my lines of credit and my credit score dropped. Ain’t been the same ever since

[@KelvinMcNeil]

This is why it’s important to keep all of your credit cards open and pay attention to the number of open accounts you have. In your case it sounds like you closed all if not most of your open accounts. Guaranteed to drop your scores. This is especially important if you don’t have a mortgage or any student loans.

[@KelvinMcNeil]

It’s all about finding the right balance. With a few credit cards and at least one installment account you will always have excellent credit. No late payments of course.

[@CrayCruz]

Good advice, thank you.

[@RachelMcNeil]

Love the new set your last video was so helpful thank you for sharing all the gems with us 😊👏🏽👏🏽👏🏽

[@KelvinMcNeil]

Thanks Rachel and you’re welcome! 😉

[@Babygal3]

Great video my credit is great but I wanted to let you know I got the fuelman card from watching your video and just found out they haven't been giving me my monthly statement credit for the 8 cent off per gallon. And they wasn't reporting to Equifax business so they said they wait 6 months then start reporting every quarter. I don't remember hearing that part in your video. But my thing is they need to get me 6 months of credit from not giving my 8 cent off per gallon. This is a business card also.

[@houseworthvisionarygroupll3694]

Keep bringing the Gems 💎 ✨ 🙏

[@KelvinMcNeil]

Will do! 💎

[@Gmailcs]

Good info

[@jamesrogers676]

I'm ready to get my credit straight

[@KelvinMcNeil]

I’ve got you. 💯

[@ndayembidi6781]

I paid off my vehicle loan yesterday. How long will it takes my credit score to update? Please reply

[@KelvinMcNeil]

30 days on average. Could be sooner depending on the statement date vs when you made the payment.

[@oliveiratreepubl]

I leased my ‘19 for 3 years, never late always timely. Credit was at 740 all across. Lease was up and I decided to outright buy the car sense inflation for new cars was just ridiculous. Sure enough after it was all said and done and I bought the car through a new car loan my credit score dropped 50 plus points with transunion & experian. This is the only debt I have on my credit! I still do not get why?

[@KelvinMcNeil]

It’s because it’s the only open debt you have. Meaning you have a thin credit profile so when you close an account and open a new one, your age of credit which is 15% of your credit score automatically shrinks. This is why it’s important to keep revolving lines of credit.

[@martinalmonte4404]

Hey Kelvin, I got a Capital one CC reporting 8 late payments. I already tried disputing and it did not come off. This CC is 4 years old while my other 2 CCs are less than 6 months old. Should I close the account or leave it reporting? I also have 10 student loans that 6 years reporting.

[@KelvinMcNeil]

Your best bet most likely be to just continue disputing 2 or 3 late late payments at a time (not all 8 at once) until they change the payment status to “Pays as agreed” and no late payments shown on the 2 year payment history. However, since there’s presence of 2 new credit cards it technically wouldn’t hurt if you closed the account.. I just think it would be more beneficial to keep the account if possible.

[@Rs-rq9fd]

So I can pay 99% of a loan and let the 1% sit to protect my credit score?

[@Rs-rq9fd]

This is in a scenario where it’s the oldest account and my newer ones aren’t comparable

[@KelvinMcNeil]

@@Rs-rq9fd unless you are about to apply for a home loan, pay it off now. This is the only scenario where it makes sense to wait.

[@Rs-rq9fd]

@@KelvinMcNeil thanks!

[@renaeoutar2683]

I need you. I'm working on purchasing my first home. I was preapproved last year but it was crazy and I pulled out. Can we connect?

[@KelvinMcNeil]

Sure. What do you need help with credit, getting approved for a home loan or both?

[@jesmith9975]

I paid off my car 9 months early and my Experian 774 dropped 19 points immediately.

[@KelvinMcNeil]

You still have excellent credit. No harm. No foul.

[@KelvinMcNeil]

Over time, you’ll get those points back.