I wanted to trade in my car but i still owe the bank for 2 years loan. as my understanding that if I trade my car the value, it can totally cover how much i owe the bank. but I am worry if it will affect my credit to pay back that early? thank you

the bank doesn't care if you trade the car in, as long as they get their money. the thing to watch for on that is if the dealership says they will give you 10k for the car, and you owe 15k. then you will have to roll that 5k negative equity onto the new car you are buying or put cash down. but it doesn't matter if you trade the car or not, as long as your payments are made your credit will not be negatively impacted by a trade.

Source(s):
I'm a loan officer & I look at credit reports daily.