 TITLE: Will Paying Off a Loan Improve Credit? CONTENT: Paying Off a Loan vs. Waiting It Out\n------------------------------------\nIt's a personal choice whether to keep a loan account open for its full term or to pay it off early. But there are a few circumstances when the decision is relatively clear: If you're trying to use extra cash to build up an emergency fund, or your loan's rate is very low, it may be best to pay the loan over time as agreed and benefit from the positive credit impact.\nOn the other hand, perhaps you need a low debt-to-income ratio to qualify for a new loan, or you have the means to pay off the loan and you don't plan to take out any new credit in the near future. In these cases, freeing yourself from the loan, and accepting a brief potential credit hit, could be a good bet. END