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Now Only Have 1 Type Of Credit

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Frequent Contributor

Now Only Have 1 Type Of Credit

Hi All

Up until last wednesday, I had CC debt, truck loan, boat loan and jetski loan - A pretty good credit mix. I got a bonus from work and paid off all loans except a small credit card balance - I guess this will hurt my scores? I am saving over $1200 a month by doing this, so I thought it was a good thing to do? What do you think?

Message 1 of 6
5 REPLIES 5
Valued Contributor

Re: Now Only Have 1 Type Of Credit

Finances over FICO.

Financially, zero debt is good.

FICO scoring, algorithm likes to see one open Installment loan with utilization at 8.9% or lower for maximum points. Not knowing your complete credit report, you could possibly loose some points.
Message 2 of 6
Super Contributor

Re: Now Only Have 1 Type Of Credit


@AllZero wrote:
Finances over FICO.

Financially, zero debt is good.

FICO scoring, algorithm likes to see one open Installment loan with utilization at 8.9% or lower for maximum points. Not knowing your complete credit report, you could possibly loose some points.

+1

 

Message 3 of 6
Frequent Contributor

Re: Now Only Have 1 Type Of Credit

Credit scores are between 780-790, have never missed a payment in my life - combined CC CL's arounf 85k, current balance around $4k on one card - thanks for the input Smiley Wink I'm not looking for more credit so it's really not the end of the world if i get dinged a bit

Message 4 of 6
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Valued Contributor

Re: Now Only Have 1 Type Of Credit

Looks like your profile is in a good spot.

$1200/month savings will be great in your in your pocketbook.
Message 5 of 6
Valued Contributor

Re: Now Only Have 1 Type Of Credit

Congrats on paying off debt! You will always be better off with no debt. Your fico will be fine in the long run!

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