Valued Member
Posts: 49
Registered: ‎01-02-2013

Paid off auto loan, will this lower my score?



I'm new to the forum and I need some advice. Let me know if this is not the correct forum for my question. I recently paid off my auto loan with Santander ($793). My current instalment accounts are at 17% utilization and my revolving accounts are at 19%. Total utilization is 19%. since I've paid the loan off will this lower my score? I have one installment loan remaining, everything else is revolving. I assume this will change my AAoA which will lowes my score? My current score is 632. I can't afford a decrease in my score. Any help/advice is greatly appreciated! :smileyhappy:

Equifax: 6/2013 (647) / 10/2013 (647) / 11/13 (654) / 6/05/14 (725)
Experian: 6/2013 (673) / 10/2013 (684) / 12/12/13 (692)
TU Walmart: 6/2013 (683) / 10/2013 (693) / 01/2014 (704) / 06/05/14 (705)
Goal Score: 700 across the board

Frequent Contributor
Posts: 319
Registered: ‎01-16-2013

Re: Paid off auto loan, will this lower my score?



I am sure someone will come along to correct me if I am wrong, but as I understand it, paying your loan off will not ding you too badly (if at all), because you have another installment loan on your account. Also, it won't decrease your AAoA because it will continue to report for 10 years. (ie: If you paid on the loan for 5 years, it will report as a 5 year old account for the next 10 years, and figure into your AAoA like that)


Hopefully someone else will come along to back this up (or refute it and teach both you and I something).

Starting Scores: myFICO EX: ???, myFICO EQ: 678, myFICO TU: 676 (01/2013)
Latest Scores: myFICO EX: 699, myFICO EQ: 700, myFICO TU: 699
My Wallet: Chase Sapphire Preferred, Discover It, NFCU cashRewards, Capital One Quicksilver, Chase Amazon Rewards
Gardening since 02/19/13
Community Leader
Valued Contributor
Posts: 1,057
Registered: ‎09-29-2009

Re: Paid off auto loan, will this lower my score?

[ Edited ]

The information above is substantially correct. The payoff will have little or no effect on your score because you still have a solid mix. The account should remain on your credit reports for about 10 years after closure. (Some have spontaneously dropped sooner, some remain well after, but generally 10 years is the rule). It will continue to factor into AAoA but will not be frozen at 5 years. It will factor as one month older each month it remains for calculating purposes.


Edited to add: Congratulations on paying off the account. It will make your next car loan easier assuming there are no negative factors on this one.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

Starting Score: 500's
Current Score: EQ 701 (FICO) TU 721 (FICO) EX 715 (Quizzle)
Goal Score: 760 ALL

Take the FICO Fitness Challenge

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+