Reply
Frequent Contributor
basballguy
Posts: 360
Registered: ‎02-20-2008
0

Impact of Auto loan payoff?

Is there a positive score impact if i have an auto loan paid off?

 

I have two autos right now with roughly 13k on each...if i have one paid off, will i see a score bump?  Right now they're at about 75% of max balance.


Valued Contributor
lhcole77
Posts: 1,432
Registered: ‎09-18-2012
0

Re: Impact of Auto loan payoff?

I just paid mine off this month. I think a bump will occur because it will be an account reporting a 0 balance. From what I understand the more accounts reporting a 0 balance, the better.
New Member
FixingFico
Posts: 1
Registered: ‎07-09-2009
0

Re: Impact of Auto loan payoff?

[ Edited ]

If you still have 1 auto loan open, then I'm gonna say your score will rise. You have to look at a balance of the types of accounts you have. Sometimes, a person with no mortgage account and pays off their auto loan early will see a decrease in their score, but where you still are keeping 1 of your auto loans open, this shouldn't be the case. If you just transfered the balance to another account, such as a credit card balance transfer, then you probably wont see a change. Unless, your balance transfer changes your credit card utilization ratio. Then, your score will probably drop if you don't have enough of a cushion between your credit card balance and your credit card limit.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}