Reply
Regular Contributor
Posts: 174
Registered: ‎11-05-2008
0

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
Moderator
Posts: 27,207
Registered: ‎09-13-2012
0

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

Regular Contributor
Posts: 174
Registered: ‎11-05-2008
0

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
Moderator
Posts: 27,207
Registered: ‎09-13-2012
0

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.
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 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.

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

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com 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.