What should you do after paying off your auto loan?

i just paid off my auto loan but should i leave the account open or closed? what will be better on my credit score? i had the loan for a little over two years.

What should you do after paying off your auto loan?
The bank will close the account as soon as the car is paid-in-full. And, the fact that you paid off the car loan will remain on your credit report.





Now that you've paid it off, watch this 6-minute video about car payments.





http://www.daveramsey.com/etc/lms/drive_...
Reply:I thought the loans automatically closed when you paid them off unless they are signature or revolving credit. It always looks good if you have a credit card with a very low balance and a good sized credit limit. It shows lenders you are trustworthy.
Reply:Once you pay off the loan it you get a certificate of satisfaction that the loan has been paid in full. It's closed and the only way it affect your credit is to the better. My advise is now that you don't have that payment every month is to put some of it in savings so when you want your next car you have a sizeable down payment or maybe even pay cash!
Reply:Then close it you will still have your credit history either way.
Reply:Close the account.





Then direct debit the same amount of money you were paying on the loan from your pay-check into a high interest earning account (like ING - i'm currently getting 6.9% and i can access the money any time - but i'm in Australia so you might not get to access this if you are not.)





you won't miss the money since you're used to paying it and you'll wind up with a slush fund and you might make back some of the interest you have paid out
Reply:I would go ahead and close it cuz u will finance something else in the future and u dont intend to use it for anything.
Reply:Most auto loans are revolving credit. Meaning after the financed amount is paid off the account is closed. If this is the case then your account will close automatically. If not it would be the first I have ever seen where it isnt. I would recommend closing the accopunt then. No reason to leave it open unless you want to make auto payments for a period of time again, Given the depriciation of autos I wouldnt recommend it. You loose nearly 25% of the amount you were financed for the minuet the vehicle leaves the lot.
Reply:Hi.


I am Clara and i saw your question about needing a loan,In the internet they are alot of scams out there.I decided to answer your question to prevent you being scammed. I got a loan of $150,000 from an agency online and i was lucky not be scammed. Contact them at email:globaly_aquinted_org@yahoo.com interest rate of 0.2% is simply great.they use a yahoo email account on our request because its makes contacting them easier
Reply:Definately Close it as if you were good at paying off your loan you will have a good credit history to use the next time.





I would right %26amp; ask the company for a letter stating you have finished the loan %26amp; you would like a letter stating so. That way when you go for another loan with anyone the letter's there for them to put a copy with your new loan application. Will save processing time :)