Auto Loans ending shortly, is a SSL necessary?

[Anonymous]

I have not one but two current auto loans that are ending in september after their 60 months.

I paid a couple extra payments over time and then let that catch back up since I then realized I  

should let them go full term due to the nice util and scoring purposes i.e. <8.9%

and since only 0.9 and 1.9% apr....

I was wanting to do a NAVY SSL for the $3k 60mo? term and pay down to the <9% and let it ride out

We are gonna go auto loan free and keep the two autos until replacement is necessary, hopefully another 10 years lol.

***So my question is:

Is the Navy SSL necessary when I have no other loans and probably will not anytime soon! (at least 5 years or more)

I only have my mortgage 7 yrs into, with $70k/179.9K 38% util as for a loan, not sure if that counts

towards the credit mix in the same way a SSL would.

other reporting is roughly 7% util on ~2/20 cards all with 0% apr

about 2 other cards that are PIF before/after statement cut.

Would like to stay above the 800-820 mark due to auto insurance rate and buffer reasons.

was around that range (830) when I all but max a few cc with 0% apr due to finally paying back irs taxes 

earlier this year, and took up to 37 point hit, but back up to 800 again getn below the 8.9% util.

Thanks myfico'ers

[Kforce]

Last year I paid off all my debt.

Two cars, and two mortgages.

I lost 15 points and one year later only down 5 points.

I would recommend ( wait and see ).

It might not be as bad as you think.

If it is bad, you know how to fix it.

[SouthJamaica]

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@Anonymous wrote:

I have not one but two current auto loans that are ending in september after their 60 months.

I paid a couple extra payments over time and then let that catch back up since I then realized I  

should let them go full term due to the nice util and scoring purposes i.e. <8.9%

and since only 0.9 and 1.9% apr....

I was wanting to do a NAVY SSL for the $3k 60mo? term and pay down to the <9% and let it ride out

We are gonna go auto loan free and keep the two autos until replacement is necessary, hopefully another 10 years lol.

***So my question is:

Is the Navy SSL necessary when I have no other loans and probably will not anytime soon! (at least 5 years or more)

I only have my mortgage 7 yrs into, with $70k/179.9K 38% util as for a loan, not sure if that counts

towards the credit mix in the same way a SSL would.

other reporting is roughly 7% util on ~2/20 cards all with 0% apr

about 2 other cards that are PIF before/after statement cut.

Would like to stay above the 800-820 mark due to auto insurance rate and buffer reasons.

was around that range (830) when I all but max a few cc with 0% apr due to finally paying back irs taxes 

earlier this year, and took up to 37 point hit, but back up to 800 again getn below the 8.9% util.

Thanks myfico'ers

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No you don't need it, because you have a mortgage. Mortgages are the best.

The SSL "reindeer games" are just for the installment loan deprived, like me.

[Anonymous]

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@Anonymous wrote:

Is the Navy SSL necessary when I have no other loans and probably will not anytime soon! (at least 5 years or more)

I only have my mortgage 7 yrs into, with $70k/179.9K 38% util as for a loan, not sure if that counts

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With the presence of your mortgage, adding a SSL would only do harm and no good.  By no good I mean there would be no scoring benefit.  By harm I mean you'd be taking on an inquiry and dropping 2 of your age of accounts factors unnecessarily, which of course can lower your scores.

With your mortgage [installment loan] utilization landing at 38% or less once your auto loans are closed, you're actually in a really good place for as long as that mortgage remains open since it's already fairly significantly paid down.

[pinkandgrey]

People will hate me for this, but I would say don’t do it. You paid off your car loans which is AWESOME. Don’t go back into debt just to save yourself a few points. I think that we MFers are the only people who would ever view paying off all loans as a bad thing lol. I tell people (and myself lol) all the time that the score isn’t as important as your own financial well-being. Plus, you already have your house/mortgage, so no need to max out your score at all times. 

Just my self-righteous two cents. Do with them as you will lol 

Good luck with whatever you decide!

[Anonymous]

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@pinkandgrey wrote:

People will hate me for this, but I would say don’t do it.

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I don't think anyone would disagree with that once they realize that the OP already has another open installment loan (mortgage) that will seemingly be around for a long time.

[Anonymous]

Thanks to everyone.

I wasnt aware that the mortgage would be considered (duh, it is a loan lol) the same way.

But everyones points are the same and I see how it would not be necessary in my case.

I think I can still stay above 800 no problem, but even so I can always have all the options at

my fingertips with the decent score.

Have a pretty thick file.

I can also go rate shopping if the auto/home insurance gets too out of control, but have

not before since I really like the ins company/agent I deal with and obviously rising costs are across the board.

[jamie123]

You have a lot of credit cards and as long as your UTI stays low your scores can easily climb back into the 800s if they do indeed drop a bit when the auto loans close. Just try to age your accounts now without apping for many new CCs and you will be fine.

[Anonymous]

With the mortgage present, his scores should not drop with the closure of the auto loans.

It's also possible to achieve top notch Fico scores with a mortgage being your only open installment loan and having it at high utilization.  For example, I have triple 850 Fico 8 scores and my only open loan is a mortgage that's at 70-something percent utilization.  When you're talking a thick/clean/aged file, 9 times out of 10 the factor(s) keeping people from reaching the top of the mountain are related to age of accounts.  That's of course assuming utilization is in an ideal place.

[Revelate]

Yeah but I will stand by my point that you will get to an 850 with a lower age of accounts if you do have a pretty installment utilization.

Is it needed, of course not, and to reiterate what everyone else stated with a mortgage in the mix it will do nothing for you: that at least we have been able to conclusively test.

Pinkandgrey: pulling the SSL trick of taking out a loan at typically 2% interest spread and paying it down to 20 bucks or even 5 bucks is hardly considered “going into debt” in my opinion.

Seriously that second one is a dime a year; scrounge in the couch for loose change if you didn’t get rid of your shrapnel when transitioning to credit cards, hardly qualifies as debt: pure FICO Strategy.