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unsecured personal loan - how much will score drop once paid off?

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Regular Contributor

unsecured personal loan - how much will score drop once paid off?

Hello!  I have a 36mo P2P loan that will be completely paid off next month (yay!).  I noticed that my original amount (credit limit?) of $5000 is reported on my credit report.  I have some credit cards with balances, so my utilization is unfortunately high.  Will my score drop significantly once this loan is paid off?  I have no other items on my credit report besides credit cards and one other P2P loan that was paid off/closed 2 years ago.  My average age of accounts is around 8 years.


Starting Score: 557 (2005)
Current Score: 803
Goal Score: 805


Take the FICO Fitness Challenge
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Moderator Emerita

Re: unsecured personal loan - how much will score drop once paid off?

Message 2 of 4
Regular Contributor

Re: unsecured personal loan - how much will score drop once paid off?

Installment


Starting Score: 557 (2005)
Current Score: 803
Goal Score: 805


Take the FICO Fitness Challenge
Message 3 of 4
Moderator Emerita

Re: unsecured personal loan - how much will score drop once paid off?

Installments don't weigh as much into your score. However, some have reported that once an installment loan closes there is a drop. Maybe due to FICOs credit mix algorithm . It is really would be a guess. I'd suggest using a credit score simulator for a better idea.
Message 4 of 4