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Frequent Contributor
Slab
Posts: 283
Registered: ‎12-16-2011
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Paid off one of two Installments

I had two installment accounts and I paid off one of them. I still have one installment (car payment) and 7 credit cards (only one with 2% usage). All installments and credit cards have never been late. Will the paid off installment have any affect on my credit score?

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
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pizzadude
Posts: 9,637
Registered: ‎01-28-2010
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Re: Paid off one of two Installments


Slab wrote:

I had two installment accounts and I paid off one of them. I still have one installment (car payment) and 7 credit cards (only one with 2% usage). All installments and credit cards have never been late. Will the paid off installment have any affect on my credit score?


Very likely you won't see any impact from this ~ installment loan utilization is a much less significant component of your FICO score than revolving utilization.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Valued Contributor
boomhower
Posts: 1,863
Registered: ‎09-20-2011
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Re: Paid off one of two Installments

You shouldn't see any change.  You still have one installment so it's still being incorporated into your credit mix.  But as mentioned it's a very small part of your score.

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: Paid off one of two Installments

The only thing that will change is your Debt to Income ratio.
You've freed up some $$ and now have more discretionary spending.
You could see some CLI as a result.

Good job on paying off that loan!

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Frequent Contributor
Slab
Posts: 283
Registered: ‎12-16-2011
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Re: Paid off one of two Installments

Thanks to everyone for your input. Equifax and Transunion have both gone up by 10 points but I realize that it rose, due to a combination of factors.

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015

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