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SOOOOOOO EXCITED!

thelastoneonearth
Contributor

SOOOOOOO EXCITED!

Next payday, I can finally pay off Avant Credit for an 1800 dollar loan. I can't wait for my score to go up!

Capital One Secured Platinum $750.00, Amazon Store Card $500.00, AEO Visa $4000.00, PlayStation Credit Card $500.00, My BestBuy Platinum MasterCard $1000.00 Amazon Chase $500.00 Discover IT $1500. Chase Disney Premier Visa $5000. Barclays Carnival Cruise MasterCard $500 Bank of America Norwegian Visa Signature $1500 "Apple Card" $1700 Chase Sapphire Preferred $5,000

My future card list:
Amex BCE
Citi Hilton Honors
AAOA 1.2years
Message 1 of 13
12 REPLIES 12
Blodreina
Established Contributor

Re: SOOOOOOO EXCITED!

If others' experiences are any indication, your score might go down lol.

Message 2 of 13
thelastoneonearth
Contributor

Re: SOOOOOOO EXCITED!

Wait what Smiley Indifferent
Capital One Secured Platinum $750.00, Amazon Store Card $500.00, AEO Visa $4000.00, PlayStation Credit Card $500.00, My BestBuy Platinum MasterCard $1000.00 Amazon Chase $500.00 Discover IT $1500. Chase Disney Premier Visa $5000. Barclays Carnival Cruise MasterCard $500 Bank of America Norwegian Visa Signature $1500 "Apple Card" $1700 Chase Sapphire Preferred $5,000

My future card list:
Amex BCE
Citi Hilton Honors
AAOA 1.2years
Message 3 of 13
Blodreina
Established Contributor

Re: SOOOOOOO EXCITED!


@thelastoneonearth wrote:
Wait what Smiley Indifferent

I've seen more than a few people that said their scores dropped after paying off a loan.  If I remember correctly, there was some discussion about how it might damage the mix of credit.  For optimal scoring, someone even suggested taking out a loan regularly if there are no other accounts like it.  I can't remember the specifics on that suggestion though.  Perhaps someone else will chime in.

 

Personally, I say don't worry about it.  Yay for reducing debt!

Message 4 of 13
Ragelog
Established Contributor

Re: SOOOOOOO EXCITED!

Paying off a Loan doesn't always increase credit. Many payoff a vehicle and get a drop then it goes back up after a new loan is established. Not always but seems to be the case I am guessing similar with any loan reporting on your credit report.

EQ04 675, EQ08 676, EX08 719, TU08 703 $12704.75/$123050 Revolving Credit (All 0% or 1.99%) - In Garden Since 5/25/2016

Last negative item should fall off in July 2017.
Message 5 of 13
DrZoidberg
Established Contributor

Re: SOOOOOOO EXCITED!

If your profile is thin, your scores will go down slightly and for a short time. 

Message 6 of 13
speedracer98
Contributor

Re: SOOOOOOO EXCITED!


@DrZoidberg wrote:

If your profile is thin, your scores will go down slightly and for a short time. 


Indeed.

 

A good example is: I refinanced my car in March of this year, and saw my scores drop about 20 points, maybe because of the AAoA drop, maybe not. Idk why actually.

 

Anyways, six months later and paying it down a bit, my scores have since recovered, plus some. Smiley Happy


Amex Platinum (NPSL) Visa Black Card (9k) Citi Prestige (6.5K) Discover It (1.5k) CSP (11k)
Message 7 of 13
DrZoidberg
Established Contributor

Re: SOOOOOOO EXCITED!


@speedracer98 wrote:

@DrZoidberg wrote:

If your profile is thin, your scores will go down slightly and for a short time. 


Indeed.

 

A good example is: I refinanced my car in March of this year, and saw my scores drop about 20 points, maybe because of the AAoA drop, maybe not. Idk why actually.

 

Anyways, six months later and paying it down a bit, my scores have since recovered, plus some. Smiley Happy


Exactly.

 

OP don't get discouraged, it's not a bad thing by all means. It's just don't expect your score to go up a lot by paying off debt. Because what you're doing in a sense is trading less debt and low utilization for payment history and AAoA. The bump down will be slight but in time it will recover and be positive.

Message 8 of 13
Infiniti515
Regular Contributor

Re: SOOOOOOO EXCITED!

On the plus side too, you are no longer obligated to their high interest rates. You can probably,  if anything get a loan with a much better interest rate. I have a loan with them and I will pay it off the first chance i get  because their interest rate is ridiculous. Sometimes the best teacher is a ridiculous interest rate.lol

Message 9 of 13
TheGardner
Valued Contributor

Re: SOOOOOOO EXCITED!

UTL and AAoA is not effected.

 

Mix of credit will cause the hit. If you have a car loan, mortgage or other personal loans you won't take a hit.

 

At any rate, losing a high interest loan is always worth a few points, congrats!

If anyone needs me I will be In The Garden. Goal Score: 760 for all in 2015.
Current FICO Scores EX: 715 EQ: 756 TU: 762
Last APP April 21, 2015.
Victim of The great AMEX HP heist of Dec 1st, 2nd and 3rd of 2014.
Message 10 of 13
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