Did your credit drop or go up after paying car off

[Anonymous]

I just paid mine off 11 months early and it has not hit my file yet so I'm wanting to know experiences as I'm nervous that mine will drop drastically and I want to buy a house.

[Brian_Earl_Spilner]

If you don't have any other installment loans, it'll drop because you don't have an optimal credit mix.

[AllZero]

Not knowing your profile, I'll take a guess between 15-30 points reduction if no other installment loan present.

ETA Report back if one of us guessed right.

[Anonymous]

My scores as of right now are 785, 787, and 779.
I've had my car for over 4 years and it was a 5 year term. I've had only ever had one credit card and that's about 6 or 7 years old. I've not had any missed payments and my DTI is very low if this helps at all

[AllZero]

What was the utilization % of the car loan before payoff?

[Brian_Earl_Spilner]

Well, you can offset the point loss by adding 2 more credit cards.

[AllZero]

^ I agree. 3 credit cards and a installment loan nearly paid off with 8.9% utilization or less will give maximum FICO score.

However, OP wants to buy a house.

[Anonymous]

I'm sorry. I'm a little confused on what you mean by the utilation %.
I may look into the credit card suggestions if I choose to wait on my house as theres nothing in my area that I've really loved so far.

And I have a very good offer from a dealership on a new vehicle (I made a post about that already.

[AllZero]

Balance / original loan amount = utilization %

[AllZero]

It's recommended to have 3 credit cards to strengthen ones profile.

If you have a thin profile, changes in data can be magnified and your FICO scores will reflect it.

It's also recommended not to apply for credit 12 months leading up to a mortgage, depending ones profile.