05-02-2012 10:41 PM
As a follow up if anyone wonders where I got the information Closed accounts are still counted in your credit mix that comes directly from the former administrator of this site. Hopefully that is a good enough source.
05-03-2012 06:30 AM
not having any non-student-loan installment account hurts you credit.The information above is overly simplistic.If all you have is revoling accounts and student loans you will lose points for diversification. Paid off mortgages and auto loans do not count towards diversity, although they do count as positive payment histories.
I neglected to include my mortgage and I don't have any student loans. Think I'll just wait it out and see what happens over the course of a couple of months. If it dips below 700 I'll have to come up with a "Plan B" I guess.
05-03-2012 06:35 AM
I'm about to pay off my 2nd car loan.
Will the payoff reduce the number of active accounts that are currently "helping" my score"? Yes it will show this account paid and closed but even closed accounts are factored into your credit mix.
And is the amount financed included in the calculation for total utilization? Installment loans like cars have a very tiny part of utilization but it's so small it's not enough to be concerned about. It's revolving credit utilization that is the most important. BTW congratulations on the debt pay off!! IMO debtpaydown/payoff should always be the #1 priority.
If yes to either then it looks like the pay off might actually hurt my score.
Thoughts/advise is appreciated.
Thanks for the encouragement. I'll post the changes to my score after the payoff in June. Since I have no late pays, this might be a good opportunity to measure the impact. BTW - I was thinking that I might need to purchase something (small) on my furniture account but, from what you write about revolving credit, I don't think that will help. Thanks again.
05-03-2012 06:40 AM
eyesopen - When I paid off my personal loan, my FICO score dipped a little. The following month, it bounced back to a new high. (Higher than it was when I had the loan.)
How many points did your score drop? Were there any other changes to your activity that might have influenced the calculations? I ask because I'm looking for work and I want to show the highest score possible.
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