So wife and I are separating and she is financing her car ...

[Anonymous]

So I am financing my truck in my name in the next couple of weeks only with her off the loan and she will be financing her car in her name. This is going to give me another paid auto loan on my credit when she has it refied. Question, this will give me since 2011 1 paid Ford Lease 12 months, 1 paid in full 28K auto loan 3 1/2 years paid in full in both  names and now her car will show paid on my credit with perfect payments since 2013 and I will have one open auto my truck. By having her car showing paid in full and since 2011 having 3 paid in full auto loans, will this give me a bump in my score? I have had my truck since April and will refiance with Wells from Ally next week. thanks

[Anonymous]

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@Anonymous wrote:

So I am financing my truck in my name in the next couple of weeks only with her off the loan and she will be financing her car in her name. This is going to give me another paid auto loan on my credit when she has it refied. Question, this will give me since 2011 1 paid Ford Lease 12 months, 1 paid in full 28K auto loan 3 1/2 years paid in full in both  names and now her car will show paid on my credit with perfect payments since 2013 and I will have one open auto my truck. By having her car showing paid in full and since 2011 having 3 paid in full auto loans, will this give me a bump in my score? I have had my truck since April and will refiance with Wells from Ally next week. thanks

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My sympathies on your separation -

I dont think you will get a Fico 8 score bump for having more installment loans.  I think it is happy with one installment loan and indifferent about more than one.

I would guess your best chance for any score bump would be with the Fico auto score, though not sure.

GL

[DU556]

Hasn't there been cases on here with people seeing their score drop after paying off their car loan?
Is it possible OP can experience the same thing?

[Anonymous]

It may happen however when I refi my truck in my name alone that will take her loan off my report DTI$23000,00 owed. It should go back up though quickly. Especially with another auto loan showing paid in full

[NRB525]

Well, what are your FICO 08 scores now? 840 or 746? That's a big gap. Are those from myFICO?

And I would not expect a big bump for multiple installment loans, the payment history may be beneficial, but you wouldn't want that much active, current debt, that would be it's own form of drag, so it's probably only a small background effect for the old paid loans.

[Anonymous]

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@NRB525 wrote:

Well, what are your FICO 08 scores now? 840 or 746? That's a big gap. Are those from myFICO?

And I would not expect a big bump for multiple installment loans, the payment history may be beneficial, but you wouldn't want that much active, current debt, that would be it's own form of drag, so it's probably only a small background effect for the old paid loans.

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My Fico8 scores off of MYFICO are Equifax 836 Transunion 823 and Experian 746. The last paid charge off came off the EQ,Tu 2 months ago and will come off my Experian in Feburary which should result in a nice increase from 746 to over 800 I hope. 

[Anonymous]

Paid off one auto loan and saw a 28 point drop. A few weeks later acquired a new auto loan and the score went back up. Appears in a sense you will potentially have the same situation on paper so the effect would likely be the same. Fico likes an installment loan (at least on my reports) and really likes it if I only show an outstanding loan balance of 35%.

[NRB525]

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@Anonymous wrote:

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@NRB525 wrote:

Well, what are your FICO 08 scores now? 840 or 746? That's a big gap. Are those from myFICO?

And I would not expect a big bump for multiple installment loans, the payment history may be beneficial, but you wouldn't want that much active, current debt, that would be it's own form of drag, so it's probably only a small background effect for the old paid loans.

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My Fico8 scores off of MYFICO are Equifax 836 Transunion 823 and Experian 746. The last paid charge off came off the EQ,Tu 2 months ago and will come off my Experian in Feburary which should result in a nice increase from 746 to over 800 I hope. 

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Alright, so in answer to your original question, no, the installment loan will not improve your score. What will improve your score is getting that last baddie to drop off of EX. Then your scores will all find their normal range, which is 820 - 830, as a result of the entire history that is already in your file. The baddie is simply the last elephant sitting on the scores, nothing else. (Well, if you want to get to 850 you will need to pay everything down even more, but that's a longer term project)

Congratulations!