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Self Lender Payoff Question

Etherial73
New Contributor

Self Lender Payoff Question

Hello all!

 

I filed Ch7 in Dec 2017, and was discharged March 2018. At that time I opened a Self Lender loan for $525 for 24 months. Fast forward to today, and I have obtained a Discover and Quicksilver card, plus a new auto loan. I no longer need the Self Lender for the installment credit mix due to the auto loan. The payoff is $325. If I pay the balance and close the Self Lender loan, will I see ANY score increase? I'm unclear how multiple installment loans figure into the credit scoring model based on balance relative to loan amount, etc.

2 REPLIES 2
Remedios
Moderator

Re: Self Lender Payoff Question


@Etherial73 wrote:

Hello all!

 

I filed Ch7 in Dec 2017, and was discharged March 2018. At that time I opened a Self Lender loan for $525 for 24 months. Fast forward to today, and I have obtained a Discover and Quicksilver card, plus a new auto loan. I no longer need the Self Lender for the installment credit mix due to the auto loan. The payoff is $325. If I pay the balance and close the Self Lender loan, will I see ANY score increase? I'm unclear how multiple installment loans figure into the credit scoring model based on balance relative to loan amount, etc.


 

You will not see score increase  if your auto loan is new. Most scoring gains happen when loan is paid below 8.9%. 

Pay Self Lender loan  off, you dont need it now. 

 

Message 2 of 3
Etherial73
New Contributor

Re: Self Lender Payoff Question

Thanks Remedios!

Message 3 of 3
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