Credit Card Center Advertiser Disclosure

Regular Contributor
Posts: 189
Registered: ‎01-18-2011
0 Kudos

Score implications for paying off small installment loan

Good morning. I have a small installment loan of about $900 that I have the ability to pay off. The interest rate is 12% and the monthly payment is $50.

I have a total installment loan balance of $52,000 across student loans, car loan, etc. Credit card util is $2,000 of $33,000 limit, and i only maintain this balance for score purposes.

Current score is 780, due to multiple inquiries surrounding our home construction and mortgage app.

Since I have the ability to pay off the $900 loan, should I? And if so, what are the likely score implications both positive and negative?
Fico Scores:
EQ - 811 (Feb '14)
TU - 829 (Mar '14)
EX - 814 (Mar '12) - Lender Pull
Moderator Emeritus
Posts: 32,865
Registered: ‎08-04-2007
0 Kudos

Re: Score implications for paying off small installment loan

I'd PIF ASAP. There wouldn't be any negative FICO ding with everything else being equal. You might see a small bump with an added $0 balance, but it depends on how many TLs report a balance already in relation to your total number of TLs.

Super Contributor
Posts: 9,668
Registered: ‎01-28-2010
0 Kudos

Re: Score implications for paying off small installment loan


+1.   I'd pay it off.   IMO paying off debt is always a good thing.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.