Reply
Valued Member
Posts: 49
Registered: ‎01-02-2013
0

Will paying off an Auto Loan hurt my credit?

Currently, my TU FICO score is 630. I owe approximately $800 on an Auto Loan. I would like to pay this off but I'm not sure if this will hurt or help my credit since I only have one small installment loan, everything else is revolving. Any input would be appreciated! Thanks!!

If it helps, how many points do you think I'll gain?
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


Valued Contributor
Posts: 2,690
Registered: ‎09-26-2011
0

Re: Will paying off an Auto Loan hurt my credit?

0.

 

You may actually LOSE points because your credit mix will change.

 

Not enough to worry about tho.

Current Scores: EX: 615, TU08: 639, EQ: 607. 04/01/2015.

Zero percent financing is where the devil lives...
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Will paying off an Auto Loan hurt my credit?

I predict a slight score bump because you still have an installment in play for the mix.

 

The previous FICO Admin had mentioned once that paying off a credit account will never impact your mix, regardless of being opened or closed. So, according to him, your mix wouldn't change even if that was the last and only installment reporting. Personally I had doubts, but you never know. I paid off my last installment and pulled my 2 FICOs the day before and the day after it reported to see the change. EQ increased by 7 and TU decreased by 5. I understand the increase due to an added $0 balance, but I couldn't figure out why TU decreased and always assumed it was due to an impact on mix. The pos/neg reasons also changed up.

Valued Contributor
Posts: 2,690
Registered: ‎09-26-2011
0

Re: Will paying off an Auto Loan hurt my credit?

Hmm.  It may be a ymmv case.

 

Last year, we refinanced DW's car...out of her name, and into mine.

 

Now, one of her "negative" marks is not having an installment loan...

 

 

Current Scores: EX: 615, TU08: 639, EQ: 607. 04/01/2015.

Zero percent financing is where the devil lives...
Valued Member
Posts: 49
Registered: ‎01-02-2013
0

Re: Will paying off an Auto Loan hurt my credit?

Thanks for the input. I'm hoping that I get a slight bump...trying to buy a house and I need all the help I can get. :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


Valued Contributor
Posts: 3,302
Registered: ‎06-09-2010
0

Re: Will paying off an Auto Loan hurt my credit?

Personally with 800 left on Auto Loan most likely you have less then 10 months to pay. So that loan will not impact your DTI.

 

If you have credit card debt, that is where I would apply the extra payments to for a score boost. If you have no credit card debt, then you need to figure out what negative accounts you have and see what you can do to improve them.

 

Paying off a 800 installment loan will have very little impact if any impact at all in your scores.

Good Luck
May all your dreams and wishes become a reality!
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.