07-04-2013 06:32 AM
I have a auto loan that will be paid off in February of next year. I'd also like to purchase a house a bit later this year. I'm wondering if my CR would look better to a loan officer with an active car loan or a car loan that's paid off. Will my credit score change when the loan is paid off?
07-04-2013 09:53 AM
What else do you have that's opened?
Lenders generally will remove your car pmt from DTI inside a few months prior to paying it off, so that'll help. Per FICO, it's YMMV.
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