I just paid off one of them. This means that I will have one less installment account ony my report (I have 3 left) Will my score take a dive now the loan is paid off, because I'm showing one less installment acount? I know it's not a good idea to close credit card accounts (revolving accounts). Is it the same with Installment accounts?
rifleman wrote: I just paid off one of them. This means that I will have one less installment account ony my report (I have 3 left) Will my score take a dive now the loan is paid off, because I'm showing one less installment acount? I know it's not a good idea to close credit card accounts (revolving accounts). Is it the same with Installment accounts?
first off congrats on paying off one of your SL's, it's got to feel good. Don't worry about the score, like Tuscani said even if you do take a hit, it would be very slight if any at all. Plus it's a postive trade line that will be on your report for a very long time and it says to future lenders that you take out a loan and pay it bac, It's win situation all around. It's good news not bad.
ok that's encouraging...I was worried that it would have a negative impact--it make sense that you shouldn't be penalized for paying things off...you ought to be rewarded.
yeah you get rewarded when you pay on time and in good standing. I on the other hand won't since it was defaulted. Even though you have a few more to go. Treat yourself tonight. It is one major hurdle you have just cleared.
