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installment loan almost paid off...will it have a negative once it no longer has a balance?

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Anonymous
Not applicable

installment loan almost paid off...will it have a negative once it no longer has a balance?

I have a student loan from 1998 that has 3 payments left.  Once it's paid off, will it have a negative effect since an aged account will no longer have a balance?
 
Reason I wonder is because TU, in the grandiose f-up fashion they're famous for, market my student loan as "unrated or in bankruptcy" when I did a dispute on another account and since it was an aged account with perfect pay history, it dropped my score 60 points.  The other two bureaus report it correctly and **bleep** it I'll get TU to fix it as well but it got me thinking...
 
...when it's paid in full...will that hurt me?
Message 1 of 7
6 REPLIES 6
fused
Moderator Emeritus

Re: installment loan almost paid off...will it have a negative once it no longer has a balance?

This is a difficult one. Some report increases and decreases in scores while others virtually no change.
Message 2 of 7
Anonymous
Not applicable

Re: installment loan almost paid off...will it have a negative once it no longer has a balance?

Nice 9 yo account that will be around for 10 more years.

IMO-I would not expect a score drop
Message 3 of 7
smallfry
Senior Contributor

Re: installment loan almost paid off...will it have a negative once it no longer has a balance?



@Anonymous wrote:
Nice 9 yo account that will be around for 10 more years.

IMO-I would not expect a score drop


I agree.
Message 4 of 7
fused
Moderator Emeritus

Re: installment loan almost paid off...will it have a negative once it no longer has a balance?

A moderator at this forum posted a modest drop (I think 15 or 20 points) in her scores after an installment loan reported PIF.
Message 5 of 7
smallfry
Senior Contributor

Re: installment loan almost paid off...will it have a negative once it no longer has a balance?



@fused111 wrote:
A moderator at this forum posted a modest drop (I think 15 or 20 points) in her scores after an installment loan reported PIF.



Special case. History of the file.
Message 6 of 7
RobertEG
Legendary Contributor

Re: installment loan almost paid off...will it have a negative once it no longer has a balance?

It depends on how much it also affects your credit mix.  If an installment loan is paid off, and it is the only installment loan reporting, it will decrease your %util,and thus inccrease your score for that element of the equation, but it may also adversely affect your credit mix, since installment loans are gone from the calculation on that part of the equation.  Simply not a single category effect, so as otheres have said... hard to tell, it depends....
Message 7 of 7
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