What's the Point Behind a Loan Payoff Letter?

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January 27, 2012

An auto loan payoff letter is just a way to prove that you have paid in full for a car. If you are selling your vehicle, often the buyer will ask to see the letter as proof that the car is owned free and clear, and does not have any liens against it. You can also use these letters to correct errors on your credit report. If a credit agency still shows you owing money on the ,this can affect your credit score. You may request a loan payoff letter any time after you have paid the loan in full.

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