A tad nervous

[Anonymous]

Just paid my auto loan off. I had no other installment loan since my mortgage has been paid off for 10+ years. Knowing that FICO wants to see a mix of credit, I took out a personal loan, then immediately paid back 90% of it so that I would have some balance reporting.  Hopefully the new one will counteract the potential of a score drop from the  auto loan being paid off.

[SMikulski49]

Even when you pay off your car loan it should stay on credit report for the next 10 years. Some reported that they have seen a little drop in the credit score but only temporarly and it goes back up. That car loan will continue to help your credit hisotry, help you with the AAoA, so don't stress it. Even if you do experiance some credit score drop it will go back up and it will only grow.

[Anonymous]

Correct, I'm not nervous about losing a positive trade line. I'm nervous about the affect of losing a type of credit vehicle like installment loan. That's why I got the other one as a replacement of sorts. Just nervous and anxious to see if and how it affects m\y scores because I plan on car shopping later this Summer.

[Anonymous]

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@SMikulski49 wrote:

Even when you pay off your car loan it should stay on credit report for the next 10 years. Some reported that they have seen a little drop in the credit score but only temporarly and it goes back up. That car loan will continue to help your credit hisotry, help you with the AAoA, so don't stress it. Even if you do experiance some credit score drop it will go back up and it will only grow.

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Mine tanked by 33 points when the one open loan I had reported paid.

[silkysean]

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@Anonymous wrote:

Just paid my auto loan off. I had no other installment loan since my mortgage has been paid off for 10+ years. Knowing that FICO wants to see a mix of credit, I took out a personal loan, then immediately paid back 90% of it so that I would have some balance reporting.  Hopefully the new one will counteract the potential of a score drop from the  auto loan being paid off.

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Congrats on paying down debt you should be fine.My move is 1 year before our car loans expire take out secured loan pay atleast 80% let it sit and report so my credit file doesn't reall notice quick change.You did correct thing and fast so point loss will be little and you should recover quickly.Good luck 

[Anonymous]

Until recently, my credit reports had one closed installment loan but no open installment loans. Then I took out a new installment loan and paid it down to 8.9% (before it reported the first time). When it did report, I saw my FICO score increase 21, 34, and 45 points at the three CRAs.

So an open installment loan does seem to account for some scoring under FICO 8 that a closed installment loan does not.

[Anonymous]

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@silkysean wrote:

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@Anonymous wrote:

Just paid my auto loan off. I had no other installment loan since my mortgage has been paid off for 10+ years. Knowing that FICO wants to see a mix of credit, I took out a personal loan, then immediately paid back 90% of it so that I would have some balance reporting.  Hopefully the new one will counteract the potential of a score drop from the  auto loan being paid off.

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Congrats on paying down debt you should be fine.My move is 1 year before our car loans expire take out secured loan pay atleast 80% let it sit and report so my credit file doesn't reall notice quick change.You did correct thing and fast so point loss will be little and you should recover quickly.Good luck 

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I had paid it down to like $600 left and it was due to be finished on October 1st. I was going to just pay that $600 over the next few months till Oct but the new installment loan reported on all 3 and I just thought, "To heck with it, I want to pay it off now and be done with it." I plan on saving $$ for a down payment for something new. Hold off as long as I can.

[SMikulski49]

I also have a car loan, I only have 2K left on it and I am wondering if I should pay it off finally and be done with it or should I keep paying the $500 I was up to this point. My next due date is not for another 16months since I overpaid everymonth. 

[CreditMagic7]

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@Anonymous wrote:

Until recently, my credit reports had one closed installment loan but no open installment loans. Then I took out a new installment loan and paid it down to 8.9% (before it reported the first time). When it did report, I saw my FICO score increase 21, 34, and 45 points at the three CRAs.

So an open installment loan does seem to account for some scoring under FICO 8 that a closed installment loan does not.

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Nice management.

It's a balancing act to be sure trying to refine every little "extra" push we can give the the health of our overall scores and maintain that level but as you see for yourself, that effort does return results.