I paid off my Harley Davidson Loan yesterday and...

[Anonymous]

I just checked out my credit score w/ Equifax, but there's no difference until today.

Could you tell me when I can see the change like credit score increase?

According to a financial manager in Infiniti Tysons corner, I needed to pay off my bike to get an auto loan approval.

I paid the loan off and Harley Davidson dealer said I would get the title in 10 business days.

Is it helpful that I bring payoff statement to get a loan unless there's a change in my credit report?

Please give me an advice. Thank you in advance.

[MarineVietVet]

Congratulations on paying off that debt. That's always a good thing but paying off an installment loan is not the same as paying off credit card debt because revolving credit like a CC is weighed much more heavily than installment debt because it is unsecured debt.

Your score may not change at all and in fact may actually go down a bit if this was your only installment loan. That's because FICO likes to see a mix of credit such as CC's, mortgages, and installment loans. But that mix is only 10% of your total score and so is not a major concern.

All you can do is wait for this to be reported to the CRA's and for them to update their records.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

OP - remember they're not just looking at your FICO score.  They're also looking at your DTI ratios, which may be why they needed you to pay off your bike.

Congrats on paying it off!  That's great.

[haulingthescoreup]

My guess is that it will update as paid at the time that it has regularly reported. That was probably somewhere around your statement date, but not necessarily.

Have you followed your reports closely enough in the past to have a good idea as to when it usually reported? That would be when you would see the balance drop by the amount of the principal in the most recent payment. (Not everyone obsessively follows their reports enough to know when everything updates, so don't worry if you don't.)

As the others have said, you don't necessarily see much of a change in FICO scores when an installment loan is paid off, but it should certainly affect your DTI ratio (which isn't part of FICO scoring.)