topic Re: Pay off affirm or let roll? in Understanding FICO® Scoring

Pay off affirm or let roll?

Suzette2 — Sun, 28 Aug 2022 13:07:51 GMT

So I have credit as noted below. I'm currently AZEO and rotate discos as reporters at 5 percent. I also have a car loan and a affirm. The affirm is just $190. I want to pay it off. Is it better to do so now or let it close out after paying off in a few months? Will it negatively impact my scores if I pay now? TIA.

Re: Pay off affirm or let roll?

Stealth-1 — Mon, 29 Aug 2022 01:29:58 GMT

@Suzette2 wrote:
The affirm is just $190. I want to pay it off. Is it better to do so now or let it close out after paying off in a few months? Will it negatively impact my scores if I pay now?TIAA.

In my case when I paid off a personal loan my FICO scores temporarily dropped several points but rebounded quickly due to a diverse credit profile. FICO liked that the personal loan balance was consistently being paid over time and shrinking. But once it was fully paid off it changed my existing credit mix of OPEN installment loans and my mortgage became the only one reporting.

Should you pay it off now really depends on if you're planning to apply for new credit in the next few months. Because it's possible it could temporarily impact your scores due to the car installment loan still reporting. The score impact might vary based on how much you owe on it - and would be magnified if you ever missed any payments (probably not). Looking at the bigger picture, with only a $190 balance left, the Affirm account will eventually close soon anyways. So either way the closed account will continue to positively impact your scores for the next 10 years.

Re: Pay off affirm or let roll?

SouthJamaica — Sun, 28 Aug 2022 15:15:24 GMT

@Suzette2 wrote:
So I have credit as noted below. I'm currently AZEO and rotate discos as reporters at 5 percent. I also have a car loan and a affirm. The affirm is just $190. I want to pay it off. Is it better to do so now or let it close out after paying off in a few months? Will it negatively impact my scores if I pay now? TIA.

We need to know

1. original amount of affirm loan

2. original amount of car loan

3. current balance on car loan

Re: Pay off affirm or let roll?

Suzette2 — Sun, 28 Aug 2022 15:32:45 GMT

@SouthJamaica wrote:
@Suzette2 wrote:
So I have credit as noted below. I'm currently AZEO and rotate discos as reporters at 5 percent. I also have a car loan and a affirm. The affirm is just $190. I want to pay it off. Is it better to do so now or let it close out after paying off in a few months? Will it negatively impact my scores if I pay now? TIA.
We need to know
1. original amount of affirm loan
2. original amount of car loan
3. current balance on car loan

1: 800. Balance 190

2: 58,000

3: 56,000

4: Current all card balances: 50.

Re: Pay off affirm or let roll?

FireMedic1 — Sun, 28 Aug 2022 23:31:00 GMT

Finances over FICO. Bye Affirm. Needle doesnt move much on loans until under 8.99% with 1 loan. You have a installment loan with the car. Thats all thats needed for FICO. So no 20-30 pt drop. You'll be fine.

Re: Pay off affirm or let roll?

SouthJamaica — Mon, 29 Aug 2022 00:32:39 GMT

@Suzette2 wrote:
@SouthJamaica wrote:
@Suzette2 wrote:
So I have credit as noted below. I'm currently AZEO and rotate discos as reporters at 5 percent. I also have a car loan and a affirm. The affirm is just $190. I want to pay it off. Is it better to do so now or let it close out after paying off in a few months? Will it negatively impact my scores if I pay now? TIA.
We need to know
1. original amount of affirm loan
2. original amount of car loan
3. current balance on car loan
1: 800. Balance 190
2: 58,000
3: 56,000
4: Current all card balances: 50.

I just needed to know the installment loan amounts and balances.

The answer to your question is that paying off the Affirm loan won't mean anything scorewise, although you might pick up a point or two from having one less account with balance.

Re: Pay off affirm or let roll?

Suzette2 — Mon, 29 Aug 2022 00:45:35 GMT

@FireMedic1 wrote:
Finances over FICO. Bye Affirm. Needle doesnt move much on loans until under 8.99% with 1 loan. You have a installment loan with the car. Thats all thats needed for FICO. So no 20-30 pt drop. You'll be fine.

Awesome. Thx.

Re: Pay off affirm or let roll?

Suzette2 — Mon, 29 Aug 2022 00:46:14 GMT

@SouthJamaica wrote:
@Suzette2 wrote:
@SouthJamaica wrote:
@Suzette2 wrote:
So I have credit as noted below. I'm currently AZEO and rotate discos as reporters at 5 percent. I also have a car loan and a affirm. The affirm is just $190. I want to pay it off. Is it better to do so now or let it close out after paying off in a few months? Will it negatively impact my scores if I pay now? TIA.
We need to know
1. original amount of affirm loan
2. original amount of car loan
3. current balance on car loan
1: 800. Balance 190
2: 58,000
3: 56,000
4: Current all card balances: 50.
I just needed to know the installment loan amounts and balances.
The answer to your question is that paying off the Affirm loan won't mean anything scorewise, although you might pick up a point or two from having one less account with balance.

Thx! Will do. 🎉