Payed off Car Loan

corymcd88 · ‎09-04-2014

I pad off my Car loan last mouth and just as it reported my credit score dropped 19 points. I thought it would have gone up with it being paid off. I had the loan for two years.

myjourney · ‎09-04-2014

Fico 08 strikes again

So far it seems 08 will penalize for no installments

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?

jamesdwi · ‎09-04-2014

@corymcd88 wrote:
I pad off my Car loan last mouth and just as it reported my credit score dropped 19 points. I thought it would have gone up with it being paid off. I had the loan for two years.

same happened to me, small price to pay for knowing I don't have a car loan anymore, and some extra cash in my checking account every month untill I decide to be another car.

Congrats.

Cards: Chase Southwest 20k & CSR 17k & CSP 10k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Landmarkcu Personal Loan 10k

Anonymous · ‎09-04-2014

So when you eliminate a debt, which I would have assumed is a good thing, that brings your scores down?

pizza1 · ‎09-04-2014

This is exactly why I'm going to take 30 yrs to pay off my big federal school loan. I'm gonna drag that sucker out till I'm 75, and then at that point I won't care if my score drops, lol !!! If I have to keep calling into my school peeps every couple years, telling them I can't pay more than $60-100/ month I will. I refuse to have a car loan for the next 30 yrs just to make fico08 happy lol!!

Ups77 · ‎09-04-2014

Happened to my fiancé but it went back up in a couple of months. It happened to me also. Then I bought the Harley and it went up 20 points go figure.

myjourney · ‎09-04-2014

@Anonymous wrote:
So when you eliminate a debt, which I would have assumed is a good thing, that brings your scores down?

Yes its a good thing the heck with Fico 08 save those dollars by all means .....Lol

So what's a few points compared to a larger bank account? I'll take the money and run every time

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?

Anonymous · ‎09-04-2014

@Anonymous wrote:
So when you eliminate a debt, which I would have assumed is a good thing, that brings your scores down?

You would think paying debt would be a good thing, lying would be a bad thing,,, not necessarily...

Which IS a good thing, keeps the world from being boring and predictable. Rationality is overrated.

pizza1 · ‎09-04-2014

Good point MJ!! I should do the same, but as you know I'm rebuilding for the next 9 yrs until my bk is off my reports, so I have to have an installment to help me

Anonymous · ‎09-04-2014

I could spend another five lifetimes trying to figure out how this credit score stuff works and I'd still be clueless lol Good to know!