Question 1

Does paying off an installment loan like a car or personal loan help or hurt my credit?

Accepted Answer

It's usually a small, temporary negative followed by a long-term positive. When you pay off an installment loan, you may see a minor score dip because you lose an active account and possibly reduce your credit mix, especially if it was your only installment loan. But that dip is minor and fades, and you're rid of the payment and interest, which is what matters financially. Unlike revolving credit card utilization, installment balances have a much smaller direct effect on your score. Never keep a

Question 2

Can debt collectors call me at work or contact my family about what I owe?

Accepted Answer

The Fair Debt Collection Practices Act limits third-party collectors. They can't call you at work if you tell them your employer prohibits such calls, and they generally can't call before 8 a.m. or after 9 p.m. your time or harass, threaten, or use obscene language. They may contact other people only to locate you, and while doing so they generally can't reveal that you owe a debt; they can't discuss your debt with family, friends, or your employer. A spouse may be contacted in some situations.

Frequently asked questions

Does paying off an installment loan like a car or personal loan help or hurt my credit?

Can debt collectors call me at work or contact my family about what I owe?