Question:
I financed a car with GAP insurance and I totaled it. My insurance payed for what the car was worth and GAP insurance payed the rest I owed. Will this increase my credit score? Thanks in advance.
Answer:
Yes because the loan will have zero balance on it the next time your financial company reports to the credit bureaus.
Aren't you glad you purchased that GAP insurance!
Yes, your credit report has no record of how your loans get paid off, just that they do. Having one less loan will lower your total debt, improve your debt to income ratio and improve your credit score
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