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New Contributor
Posts: 74
Registered: ‎02-23-2013
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I have an installment loan...

That will be paid off soon will that cause my score to drop...? The credit history on it is perfect never late..And i have had it for 5 years...


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Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: I have an installment loan...

Installment loans play a very, very small role in your score.  If it does it shouldn't be more than 1 or 2 points.

Established Contributor
Posts: 662
Registered: ‎02-20-2013
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Re: I have an installment loan...

wouldn't that depend on if you have only one installment loan or 4+ installment loans. I thought more than 3 was a threshold afterwhich your score was negatively affected by having so many?


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Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: I have an installment loan...


NJTurnpike wrote:

wouldn't that depend on if you have only one installment loan or 4+ installment loans. I thought more than 3 was a threshold afterwhich your score was negatively affected by having so many?


Installment debt usally isn't a problem in scores.  Too many accounts with balances would include installments since an open installment carries a balance so you could possibly see a small ding.
But if you have 4 CC and only let 1 carry a balance, that would counter-balance the installment accounts.
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