@Anonymous wrote:I have been working hard to get my credit score above 700, however, my wife's car, which is listed in both of our names, is scheduled to be paid off the first of next month. I've read different things in regards to how this will affect my score. Can someone please advise me on what to expect? My goal is to apply for a mortgage in about six months and I hope this doesn't kill my chances.
Not to worry.
If it's your only installment loan, paying it down to zero will hurt your FICO 8 and 9 scores but will have little, if any, effect on your mortgage scores.
Congratulations on getting rid of the car loan.
@Anonymous wrote:I was wrong, my score dropped 22 points. I mentioned having another car loan, however, since it is through LightStream it is listed as a personal loan. The thing that sucks most about it the fact that my score went up 21 points before the drop due to paying some cc balances down. I now below 700 again.
Although it hurts your FICO 8 scores, I think you will see that it had little or no effect on your mortgage scores.
Isn’t a personal loan still consider an installment loan? So you shouldn’t have really lost points on your credit mix. Did anything else happen?
@Anonymous wrote:I was wrong, my score dropped 22 points. I mentioned having another car loan, however, since it is through LightStream it is listed as a personal loan. The thing that sucks most about it the fact that my score went up 21 points before the drop due to paying some cc balances down. I now below 700 again.
Goal Scores: 700 across all three
This is the only thing showing