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Did your credit drop or go up after paying car off

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Member

Re: Did your credit drop or go up after paying car off

Oh ok. The original loan was between 15k and 17k cant remember exactly and then the remainder was a little over 3k that I paid a few days ago. So that I could bring title to a different state to trade vehicle in. Guess I should've just rolled the loan over...
Message 11 of 18
Valued Contributor

Re: Did your credit drop or go up after paying car off

Not knowing all the details. Sounds like you got a good truck. So thats all that matters.
Message 12 of 18
Established Contributor

Re: Did your credit drop or go up after paying car off


@Brian_Earl_Spilner wrote:

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


But what about if he had a PLOC with say 10k line and 0 bal ?? Is that considered an installment loan

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Message 13 of 18
Valued Contributor

Re: Did your credit drop or go up after paying car off


@smarzig wrote:

@Brian_Earl_Spilner wrote:

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


But what about if he had a PLOC with say 10k line and 0 bal ?? Is that considered an installment loan


PLOC is considered a revolver. If you pull your own report, your PenFed PLOC should show revolving, depending on the credit monitoring service.

Message 14 of 18
Valued Member

Re: Did your credit drop or go up after paying car off

Just paid off my vehicle this past month so can add another data point. It was a $17k payoff, original loan was $20k. Only had vehicle about a year, still had 4 left to go on loan. But decided wasn't going to do the car payment thing anymore. Paid it off, sold it soon as the lien was released, bought an older cheaper car with cash. Not really relevant to this thread, but getting rid of that $350/mo payment feels great!

It just updated on reports and scores dropped about 10 points from 810-820 to 800-810. Other accounts are a mortgage (owe $135k, original loan $145k) and 3 CCs (one only used once a year and PIF to keep it open, my main is PIF each month, other is used for few things and allow to report balance).
Message 15 of 18
Established Member

Re: Did your credit drop or go up after paying car off


@Frut wrote:
Oh ok. The original loan was between 15k and 17k cant remember exactly and then the remainder was a little over 3k that I paid a few days ago. So that I could bring title to a different state to trade vehicle in. Guess I should've just rolled the loan over...

@Frut, curious to see if your reports updated yet with your loan paid off? The only other thing I would have advised if you are trying to get a Mortgage were you trying to conventional or FHA? With a thin file you may have limited options and I would have talked to a mortgage broker or professional who could advise if paying off loan before applying would hurt your chances for either type of loan since you don't have much else on you profile. Good luck

 

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Message 16 of 18
Member

Re: Did your credit drop or go up after paying car off

Hi.
Yes. My score updated a couple times. It went up to 800/801/815. That was before my auto loan pay off showed. Then it went to 800/771/775. That's where it's at right now. Still shopping around for both but have not found one that I must have just yet. Winters coming so hopefully soon on the truck!
Message 17 of 18
Regular Contributor

Re: Did your credit drop or go up after paying car off

I have a pretty extensive report and my score drops initially every time I pay an auto loan off.
Starting Score: (5/01/2017) -- EXP: 495; TU: 445; EQ: 460
Current Score (011/01/2019): EXP: 692; TU: 704; EQ: 674

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Message 18 of 18
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