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MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009
Re: Installment Loans vs Credit Mix?

Lucid08 wrote:

I am making the last payment tomorrow on my Motorcycle that I refi'ed with NFCU close to 4 years ago. I also have two other small installment loans that currently run into August(last payments due in Aug for both).

 

I have the ability to pay off the two smaller loans over the next three months. If what I remember about credit mix is true, I believe that my credit score might be hurt a bit if I do not have any open TL's in the installment category, so I'm wondering would my scor ebe best served if I contiue to make timely payments on both until August, or would I be best served to pay them off early?

 

I want to app for a car loan with NFCU in mid-May and I'm wondering which route to take to maximize my score come May.

 

Any input is appreciated! :smileyhappy:


The key word is "might". Yes credit mix is a small part (10%) of your credit score but in my opinion being debt free always trumps any other consideration.

 

Even closed accounts are counted into your credit mix although not weighed as heavily as open, active accounts.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".