Paid Off Auto and Student Loan, use Self Lend?

[HappyGoLucky4U]

After several years, I finally paid off my auto & student loans!  It did impact my FICO score negatively, about 20 points decrease.  I understand that having a mix of loan and credit is a good thing.  Since the auto and students loans are no longer active and closed, should I get a Self loan so I have an active loan on my credit report?

[SouthJamaica]

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@HappyGoLucky4U wrote:

After several years, I finally paid off my auto & student loans!  It did impact my FICO score negatively, about 20 points decrease.  I understand that having a mix of loan and credit is a good thing.  Since the auto and students loans are no longer active and closed, should I get a Self loan so I have an active loan on my credit report?

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It's not necessary.

But if you want to pick up some easy points you could get an SSL from a lender like NFCU and immediately pay it down to 9%.

If you do nothing your scores will pick up anyway over time.

It's not "a good thing" to have loans; it's just a way to appease an anomaly in the FICO 8 and 9 algorithms.

[Brian_Earl_Spilner]

I'd rather save lowering my AAoA for something I'll actually use.

[M_Smart007]

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@HappyGoLucky4U wrote:

After several years, I finally paid off my auto & student loans!  It did impact my FICO score negatively, about 20 points decrease.  I understand that having a mix of loan and credit is a good thing.  Since the auto and students loans are no longer active and closed, should I get a Self loan so I have an active loan on my credit report?

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You might post your AAoA, So we could get an idea if it would be worth it?

[HappyGoLucky4U]

My current AAoA is 3 years and 3 months

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@M_Smart007 wrote:

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@HappyGoLucky4U wrote:

After several years, I finally paid off my auto & student loans!  It did impact my FICO score negatively, about 20 points decrease.  I understand that having a mix of loan and credit is a good thing.  Since the auto and students loans are no longer active and closed, should I get a Self loan so I have an active loan on my credit report?

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You might post your AAoA, So we could get an idea if it would be worth it?

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