@Gmood1 wrote:
@Credit-hoarder wrote:
@Gmood1 wrote:
Nope, your scores will actually drop with no active installment loan. Thanks for the explanation. I'd grab a secured loan if you won't have any installment loans after paying off the auto. That will keep your scores from taking a nose dive once the paid off loan reports to the credit bureaus.Not to derail OP's thread---but when my CU loan paid off in early May, my scores didn't nose-dive....but they tumbled pretty good. And the kicker is--my Penfed loan was/is still reporting.
BTW--Congrats OP on the Magnet approval!
Thats because you still had an active installment reporting. I watched a good friend's drop 40 points when he paid off his only active installment loan. He didn't take my advice and open a SSL. He wished he did afterwards. lol
His scores have since rebounded, but he did add a new truck and ATV loan. He's back in the 800s now.
That was one of the reasons I took out the Penfed loan--I was hoping I wouldn't take ANY kind of score hit though when the first one paid off.
BUSINESS 
Incredible approval- congratulations!
To me it’s much more important to have a clean profile than to chase a certain credit score. When the OP pays off his car note and his scores drop, if he isn’t applying for new credit or buying a home, then he shouldn’t worry about it. I wouldn’t open another loan just to chase a score unless you are a rebuilder, and you’re not. That money you’re using to pay back a new loan that you don’t need could be put to better use. And be happy the car note will be finished.
NFCU GoRewards Sig ($40,000), NFCU Cash Rewards ($33,000), PenFed Power Cash ($25,000), FNBO Evergreen Visa ($20,000), Bread Financial Rewards Amex ($19,150), PNC Cash Rewards ($18,400), PNC Cashbuilder ($18,700) , Citi Double Cash ($9600), Discover It Cash ($9000), Walmart MC ($8000), Bank of America Unlimited Cash Rewards ($7500), Fifth Third Unlimited Cash Back Mastercard ($7500), Wells Fargo Active Cash Sig($7000), Apple Card ($6000), Amex BCE($6000), Amex ED($6600), X1 Card ($5000), PNC Points ($8000), Amex Cash Magnet($2000), Fifth Third Truly Simple ($4000), Truist Spectrum Cash Rewards($4500), Truist Bright Card($4500), CapOne Quicksilver(Bucketed @$1500), US Bank Cash+ ($5,000), US Bank Cash+ ($1,000), WF mortgage 195K Fico 8: EQ 766, TU 763, EX 753, FICO 9:EQ 829, TU 812, EX 791, AAoA-97 months, AoOA-28 years
@stonedog23 wrote:
To me it’s much more important to have a clean profile than to chase a certain credit score. When the OP pays off his car note and his scores drop, if he isn’t applying for new credit or buying a home, then he shouldn’t worry about it. I wouldn’t open another loan just to chase a score unless you are a rebuilder, and you’re not. That money you’re using to pay back a new loan that you don’t need could be put to better use. And be happy the car note will be finished.
An SSL is just pennies on the dollar. I believe mine cost me 6 cents a month.
A clean profile as you call it, can get you denied for something you may really want.
Having a mix of credit is never a bad thing IMO and experience. That doesn't mean you have to be in debt to do it.
It really boils down to having a stronger credit profile more so than chasing scores.
You can have 800 scores and have a very weak credit profile.
My buddy mentioned earlier had that exact problem. 800 scores but very weak.
He was denied credit for not having enough of it.
It depends on the OP’s goals. Just as I mentioned in my reply, if he isn’t applying for anything in the next few months, he doesn’t need to open a loan. A credit mix is important, we all know that, but this poster isn’t in the category where he absolutely needs an installment loan to improve his profile. But I digress...
@stonedog23 wrote:
It depends on the OP’s goals. Just as I mentioned in my reply, if he isn’t applying for anything in the next few months, he doesn’t need to open a loan. A credit mix is important, we all know that, but this poster isn’t in the category where he absolutely needs an installment loan to improve his profile. But I digress...
Some how you continue to miss the OP mentioned paying off her auto loan. She will without a doubt get hammered if there's nothing to use as a ballast. I had one report paid in April of last year. My scores only dipped a few points and then bounced back. Simply because I have other active installment loans reporting.
Let us know how it goes OP. I don't know how old the auto loan is? 18 months or longer is a good practice to build some payment history on your installment loans. That's if the interest rate isn't taking your head off. 😂
And if that's so, refinance with someone offering a better rate.