Congratulations on being debt free.
Congratulations on being free and clear of your car loan!
@Dave4fun wrote:Hi everyone
I paid off my car loan the other day. I paid it off early, about 6 months ahead of time. I know from being a MyFicoer that the score would drop, because I would no longer have the installment loan. I do still have a personal installment loan, and of course the mortgage. So, Equifax remained unchanged. Trans Union dropped 15 points. Experian dropped 11 points. Personally I think that is nuts. Nevertheless, I am happy. No more $600 a month car payment! Financial freedom! Well, sort of...LOL! Anyway, just thought I would share, and I think its so strange that the score would drop, especially since I have other installment debt. Scores in Signature are current.
I seriously doubt that the payoff of the car loan caused the point drop. The only way it could have, would be if the aggregate installment utilization percentage rose from below 10% to above 10%, but that does not seem to be the case here.
@SouthJamaica It happened to me as well while having other installment loans. 20 points lost on Fico, nothing else changed.
Congrats on the milestone and as so many have said before, "finances before FICO". This a good thing you have done 😉
Yup, my NFCU SSL got paid off from my not realizing that once the loan is under $10 they will cover what's left and consider it paid as a "courtesy". My FICO8 scores, EX dropped 14 points to 777, EQ 11 points to 780 and TU a massive 29 to 799. Hopefully that won't impact the autoloan shopping I've been waiting to do for the last few months (waiting on a Toyota allocation), specifically if EQ gets pulled.
@MrZero You'll be just fine with your car shopping. Although different from credit cards, which are unsecured debt, your scores are now in what I consider to be the golden range. 745-785 or so. (680 and up for cars) A quality approval is almost guaranteed.
You just don't see denials in that range like you do for members with over 800 scores from time to time. Although if you're here you're WAY outside of normal so who knows what they're thinking about our profiles 🤣