Auto FICO score question

[IllinoisNative]

I have one more payment due on my auto loan (YAY!)  which I'll pay off in August.  Does paying off an auto loan affect my auto FICO score?  My FICO has my auto enhanced FICO scores at over 700.  Will that drop with a paid off loan?  Or does that number stay high since I have a good history with my auto loan?  Currently, it's my only installment loan on my report so I'm expecting to take a hit for my credit mix.  Thanks.

[tufa4311]

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@IllinoisNative wrote:

I have one more payment due on my auto loan (YAY!)  which I'll pay off in August.  Does paying off an auto loan affect my auto FICO score?  My FICO has my auto enhanced FICO scores at over 700.  Will that drop with a paid off loan?  Or does that number stay high since I have a good history with my auto loan?  Currently, it's my only installment loan on my report so I'm expecting to take a hit for my credit mix.  Thanks.

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It is well known that there is a possibiltiy, is some instances a high one, that once an installment loan is fully paid off it can negatively affect your score, esp. if you have no other installment loans. As an example:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Paying-off-my-car-loan-ruined-my-credit-S...

If you do a google search of myFICO.com you will see many instances of this.

[IllinoisNative]

Thanks!  I was expecting to take a hit for my credit mix due to my only installment loan being paid in full.  I just wasn't sure if that translated into my auto enhanced score taking the same hit. I was hoping not.  lol

[tufa4311]

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@IllinoisNative wrote:

Thanks!  I was expecting to take a hit for my credit mix due to my only installment loan being paid in full.  I just wasn't sure if that translated into my auto enhanced score taking the same hit. I was hoping not.  lol

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Well, I would assume that the auto enhanced score would be hit hardest since it was an auto loan that was closed - I don't know for sure but sounds logical.

[MarineVietVet]

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@IllinoisNative wrote:

Thanks!  I was expecting to take a hit for my credit mix due to my only installment loan being paid in full.  I just wasn't sure if that translated into my auto enhanced score taking the same hit. I was hoping not.  lol

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Perhaps one or both scores will take a (temporary) ding but you'll have one less debt and to me that's much more important.

[IllinoisNative]

I'm excited about having one less debt.  I'm putting that money straight into a savings account every month.  That's much more important.  I'm thinking of taking out a small loan that I don't need just to have a loan reporting.

[MarineVietVet]

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@IllinoisNative wrote:

I'm excited about having one less debt.  I'm putting that money straight into a savings account every month.  That's much more important.  I'm thinking of taking out a small loan that I don't need just to have a loan reporting.

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That's certainly your decision but you need to decide if paying interest on a loan you don't really need is worth a few points.