Will paying off my mortgage hurt my credit score?

[dan67448]

I currently have a mortgage that I am about to pay off. I owe roughly 53,000 on the loan. My credit score is 600. How much will this hurt or help my score? Any insight would be greatly appreciated!

[StartingOver10]

A paid in full mortgage is a good thing!  Congratulations on being able to have a home you own without having a mortgage. It is a milestone you should celebrate

The paid tradeline stays on your credit report for 10 years.

Your score is more a reflection of revolving credit card type accounts. Any installment type loans (auto, mortgage) only account for 10% of your score.  If you are looking to increase your score than active credit cards will help you more than a mortgage tradeline. Try the rebuilding forum to see what you need to do to increase your score.

[frugalQ]

when we refinanced our house back in 2012, i lost about 10 points (on myfico) when the old mortgage reported as closed.  I gained those back a few months later after the new mortgage started reporting.

Paying off your mortgage is a good thing...and should be celebrated.  Unless you are trying to get a new mortgage, you should just eat the points and look for other ways to increase your score.

[ezdriver]

I don't like the term "hurt" as it related to credit scores. Credit scores are simply the scored results of your credit profile. Yes, if you close a tradeline by paying it off, that loss of tradeline will be reflected in your scores ... and it will be lowered.