Paying off a CC results in score inrease, but paying off a personal loan does not?

[CreditMagic7]

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@elim wrote:

The way Fico scores paid instalment loans is the biggest crock ever.  

One of the reasons I truly despise Fair Isaac "Corporation".    .   A revamp is in order there.

luv this forum though    :]

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Couldn't agree more from this consumer's perspective and what a great find! I think you hit the nail on the proverbial head with that conclusion of "I guess if your loan is paid, a 30 point drop will gain some lender a bit more interest when you finance your next item"

Never thought of it but that makes 100% perfect sense. Those dogs

[CreditMagic7]

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@Anonymous wrote:

I think one of the veterans here has observed that it is only FICO 8 that appears to be so slanted in favor of open installment loans.  Previous versions of FICO, I think he observes, give you a lot of credit for closed installment loans too.  For example the models that are still used in mortgage underwriting do that, and I'd guess that the auto enhanced FICO models love seeing closed auto loans that were paid on for at least a couple years.

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With that being the fact, it's my hope more n more lenders will transition quickly over to the new FICO 9.

[Anonymous]

In the meantime the special emphasis that 8 has on having an open installment loan is (as Revelate says) easy to gimmick (and at extremely low cost to you).