SL dropoff coming, effect on score?

[brother7]

I have 4 SLs from Sallie Mae on my EQ and EX credit reports (not on TU). EX says they're scheduled to stop reporting on 12/2009.  On my Score Watch report, the 4 SLs are all zero balance/paid with no lates. They are classified as installment loans with last activity 12/1999.

The only other things on my credit report are 1 credit card (active), 1 charge card (inactive) and 1 public record (tax lien, released 4/2007).

Question:

What will be the effect on my FICO score when the SLs drop off, and why?

[PayingTheBills]

It will most likely have a negative effect on your FICO score. 

#1 Your "credit mix" is going to take a hit because you will no longer have an installment loan reporting, and

#2 Your AAoA will probably take a big hit too, depending on the age of your 2 cards.

[llecs]

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PayingTheBills wrote:

#1 Your "credit mix" is going to take a hit because you will no longer have an installment loan reporting, and

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Close....the credit mix already took a hit when the TL was closed (which, OP, should have been 10 years ago).

[PayingTheBills]

So, does a closed installment account only help during a manual credit review, or does it still help your FICO score because the payment history is still factored in?

[llecs]

A closed SL, as in OP's example, is likely a huge part of his/her score due to the AAoA and the payment history as you pointed out. I bet OP would see a significant drop in score once removed. It all depends on the age of the CCs.

[brother7]

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@llecs wrote:
Close....the credit mix already took a hit when the TL was closed (which, OP, should have been 10 years ago).

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On my credit report, the 4 SLs were opened 06/1996, last activity 09/1999, last update 12/1999. Am I correct in assuming the SLs don't currently figure into the credit mix?

Regarding AAoA, the 2 cards were both opened 11/1998, around 10 years ago.

[llecs]

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brother7 wrote:

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@llecs wrote:
Close....the credit mix already took a hit when the TL was closed (which, OP, should have been 10 years ago).

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On my credit report, the 4 SLs were opened 06/1996, last activity 09/1999, last update 12/1999. Am I correct in assuming the SLs don't currently figure into the credit mix?

Regarding AAoA, the 2 cards were both opened 11/1998, around 10 years ago.

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Then you are in good shape. Yes, the ding already occured to your mix...nothing to worry about there. But your history is solid and I bet you are in great shape. I bet you won't even notice a score change with your high AAoA.

[brother7]

Actually, I'm about to kill my AAoA in the next month or two   It's credit card-related so I'm gonna post in that Forum.

Thanks for the feedback, guys