Fizzle, look at the pie chart in the "Credit Education" section of the menu bar at top of page. You will see that 10% of your Fico score is based on types of credit.
Lenders like to see a mix of credit instruments in your credit file, and how you are handling those.
It is purely logical to pay off an installment note to improve your debt posture. Butt paying off installment loans can actually cause your score to drop in some instances. It did with me. Last August I paid off 2 car loans, and my scores actually dropped.
IMO, you'd be best served by using your new credit cards very responsibly, build some history on them, while keeping the utilization to 10% or less. While continuing to make payments on your installment notes.
Just my opinion. Hope that helps. 
I like your answer hauling. Of course I would. We said about the same thing. 
(look at the time stamp at the bottom. too funny)
And good morning to you.
Message Edited by Sylviatob on 11-07-2007 04:23 AM
This FICO score business certainly is challenging. While I understand the precautions everyone tends to take in order to try to maximize their FICO scores, I find it rather frustrating to see so many different end results. As we compare our experiences to others, we never know if we are comparing apples to apples ... and certainly find it difficult to anticipate what FICO will do. The encouraging thing about Mortgage Loans is that your score may get you in the door, but a manual review of your reports and other factors important to your lender will dictate the final outcome.
FWIW, several years ago when we purchased a new home, my DH's ScorePower Equifax Beacon score was 799. We had no recent installment loans and our prior mortgage had been paid off years earlier. For many years, the only revolving credit card that we had used was our VISA, excluding the variety of store cards available to us. And ... that particular VISA card was not even reported to EQ.
I don't know what the FICO scores were with TU and EX because I never checked. It would be interesting to know whether they were higher or lower since our VISA was reporting to them (Balance $2500 with CL of $9000.)
In spite of the lack of currently open installment or mortgage accounts and only one revolving account reporting a balance (only through TU and EX) we sailed through the process of obtaining our mortgage loan at the best possible rate and terms. However, YMMV because we aren't comparing apples to apples.
*yawn* And you're an hour behind me! (Texas, right?) Notice how much shorter your reply is! I've gotta work on that, somethign fierce...
Sylviatob wrote:I like your answer hauling. Of course I would. We said about the same thing.(look at the time stamp at the bottom. too funny)And good morning to you.
Fizzle1979 wrote:Well I have decided on paying $3850 towards the personal loan that is charging me 16.99% interest. Which will leave me with a balance of $305 on the loan to pay it off over the next few months. It was recently opened in 06/07 and I feel I'm paying to much in interest.The auto loan was opened in 06/05 and I've paid $300/month extra towards principal and knocked it down real quick. Then I requested a re-am and they did it. So my monthly note dropped from $315 to $200 but was still over the original loan terms. Which is good because I'm keeping the installment account open and paying $50 a week now towards it.Both loans are through Capital One and after having a credit card with them for two years and never being late, they refused to give a credit increase period. I was never late on my auto loan or personal loan either. So along with wanting to pay off my debts I also want to "punish" Cap One for not honoring my request by not giving them that 16.99% interest.
Sounds like a plan! And if I hadn't have been so coffee-less when I posted earlier (we ran out of coffee! 
), I would have added: don't pay crazy interest just in an attempt to make the FICO gods happy, and I've read here repeatedly that any FICO scores at 720 or so are good enough for the best interest rate going, anyway.
), I would have added: don't pay crazy interest just in an attempt to make the FICO gods happy, and I've read here repeatedly that any FICO scores at 720 or so are good enough for the best interest rate going, anyway.* Note to self: pick up coffee on way home *