@DSndj wrote:
My husband and I have recently paid off our car loan with no late payments. I was wondering if that will help improve our credit score?
Hello and welcome to the forums.
Congratulations on the pay off. In my opinion debt reduction should always be the #1 priority. If that was your only installment loan then your score might actually go down a bit because FICO likes to see a mix of credit and paying off that auto loan could reduce that mix. However the credit mix is only 10% of the total score so it's not all that important.
Also reducing or eliminating installment credit is not weighed nearly as heavily as reducing or eliminating revolving credit.
I wish I could be more specific about a score change but that's the best I can do. Just be grateful you were able to pay this off. Keep making all your other payments on time and keep any revolving utilization between 1-9% and your scores will take care of themselves.
From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
You can do the same thing with hard work
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