Selling home/paying off car loan

[Anonymous]

Hello everyone,

I currently started rebuilding my credit within the last two months.
I have been approved for:
Captial One Quicksilver One $300
Discover secured $500
CreditOne $400 (don't plan on using this one just wanted to get my credit going)

My experian score is currently at 585
Credit Karma/Creditwise has my scores 630-636 For TU (I know I shouldn't trust these)

I'm currently in escrow for the sale of my home and had planned to payoff a car loan before that as well.
I've been reading on the forums that paying/closing off Installment loans affects credit score negatively. Is this correct?
If so, should I hold off from paying off my car?

Thank you for all the help I've been getting so far!

[Anonymous]

Kind of.. ideally you want atleast 1 installment loan reporting in order to maximise the fico scoring system.

As long as you have a separate installment loan reporting, it's okay to pay off the car(if you're wanting to max your fico score for right now - remember credit scores have no 'memory', so if you don't need your highest score RIGHT NOW, i.e. you're repairing credit to buy a house in a year, then maybe it'd be better to pay off the car now and open a SSL loan later on to check the installment loan off your list)

[rmduhon]

If you're planning on buying a house in a year and you want to lower your DTI do the SSL now because ideally you want no new accounts within 12 months of approval.

[Anonymous]

What rmduhon said. If you won't have another installment loan reporting, open a SSL soon (look for method here) so it will have time reporting.