Hi everyone,
So I paid off a 48 month installment (auto) loan in 13 months, no missed payments, etc. I'd rather get my DTI down and not pay unnecessary interest than drag on a loan I don't need for a few extra points.
That being said, as this was my only open installment loan, I took about a 13pt hit now that it's reported as closed. Will this drop recover over time, as my balances stabilize? The loan last reported 1.8k left on it before I paid it all off. Or is that just the brunt of no longer having as diverse a spread of open credit, and I'll just have to see slow increases from on time payments on my revolving accounts, slow increase of AAoA, etc? I know scores go up with positive payments over time regardless, I am just curious if the drop was from a 1.8k balance becoming zero, or simply because I no longer have an open installment loan reporting.
Thanks!
