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If I am reading this correctly you shouldn't take any point loss at all, in fact you may gain some. Once the auto is paid off, you will still have an installment loan being reported open in the form of a mortgage.
My interest rate is 0.9% for 5 years so i think it was about $450 in interest.
I’m going to call and pay off this thing.
@DU556 wrote:My interest rate is 0.9% for 5 years so i think it was about $450 in interest.
I’m going to call and pay off this thing.
You are on the right track. Pay now, if you can, and get done with it. You may see a slight fluctuation of scores due to "credit mix" and such, but in the long run, you are good.
I just refinanced my Chase auto loan, which of course involved paying off the old loan.
My EX FICO 8 score dropped by a whopping 3 points! I do have a mortgage as well as a couple of other auto loans, so paying off one auto loan didn't make much difference. In fact, the minor score drop could have been caused by other factors entirely unrelated to my auto loan payoff, but I'm not aware of any.
Of course, YMMV!
@DU556 wrote:
What do you recommend?
What type of points drop do you usually see?
I would save interest and own the car. ( Pay off the loan )
You still have a mortgage for credit mix, should not see a loss from car loan paid off.
Fico score loss is dependant on a lot of factors.
No one can give you an accurate answer.
Have seen post of 100 point loss, with all installment loans paid.
I paid off two mortgages, a car loan and only lost 15 points.
No two profiles see the same loss.
Be debt free, save interest, don't worry about Fico scores.