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?
@Donovanbrown wrote: I hear that Installment debt bring down your score
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.