Re: How Will Paying Off CC vs. Installmen
t Loans Affect Score?
07-21-2007 06:08 PM
Agreeing with all that has been said, I also offer the fact that paying off an installment loan takes it out of your "type credit" category. Could cost 10-20 pts. With installment loans gone, you will take a hit in the 85 pt credit mix category, which will be much greater than eliminating the loan. If FICO gain is your goal, keep it in the mix. Pay off revolving accounts, and take advantage of the history of payments on the ACTIVE installment loan.