Installment debt

[Anonymous]

I hear that Installment debt bring down your score, I'm looking to refi in 2months, I owe 2800 on my car, and wanted to know if i should pay it off. will it help bring my score up? i got the loan 4 years ago for 18000, and i pay about 400 a month for it. now if i move it to a credit card with 0% interest i'll pay about $60-80 a month, what do you guys think?

[Anonymous]

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@Anonymous wrote:
I hear that Installment debt bring down your score

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Not really true. FICO only hates installment debt with lates. Installment loans that are well into the loan - FICO loves those. FICO likes to see various types of accounts, I'd keep the Auto Loan open, unless you have some other reason for paying it off.

I have actually heard of people experiencing the exact opposite actually. Their scores have gone DOWN after paying off auto loans.

[Anonymous]

who ever made up credit scores and how they work needs a SLAP!!

[fused]

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Donovanbrown wrote:
who ever made up credit scores and how they work needs a SLAP!!

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What do you prefer, a pimp slap, love tap or major beat down?

[Anonymous]

if you move revolving to installment debt it frees up your revolving Util which is 30% of your score