Hi all!
I want to make sure that my scores don't drop if I pay off my car early...
Here is where I stand...
INQ- Average 7 on each report, 3 within the last month due to mortgage app. should be down to 3 by May due to the drops. Only 3 in the last 12 months.
Open Accounts: 12 Credit/store cards, 5 student loans, 1 car loan
Closed Accounts: $0 Balance- 10 Credit/Store Cards, 6 Student Loans, 2 auto loans
Negative items: Recent 30 and 60 day late on 1 CC account (12/2013 and 1/2014) Now current and $0 Balance and showing ontime payment for Feb.
10 scattered 30 late payments in the last 7 years on 4 different accounts.
4- 30 day lates on auto loan in a row from 4/2013-7/2013.
Paid Charge off from 1/2010
Total CL: 27500
Total UTL: 37% (Balances on 3 cards... one at 50%, 65% and 10%). Will have paid down to 28% by the next billing cycle (2 cards, one at 30% and one at 50%)
Current Scores (from 3/11/14): EX-650, EQ- 631 TU-648.
I want to pay off my car (I am in process for a mortgage) so that it isn't counted in my DTI ratios but I don't want my scores to drop due to the pay off... Any thoughts? Is there a bump when you get your total UTL under 30%?
Just trying to play the credit score game here...
Starting Score: 06/2010- EQ 464
@user5387 wrote:Utilization for installment loans (car) and revolving (cards) are treated separately.
Paying off an installment loan should help your DTI, but may hurt your scores a bit, given that an open installment loan helps in certain ways such as "mix of credit types".
If you want to boost scores, I'd look at paying down revolving utilization as much as possible, along with addressing derogatories.
What is your source that closed tradelines don't factor into mix of credit? I think the "no open installment loan" penalty falls under a different category but I could be mistaken.
