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It might be your auto loan too falling under finance company, ect installments. Open loans drop scores because they are debt. That simple. Pay it off and score will come up. I have never heard of any installment after being closed dropping a score if it was paid on time. Maybe if someone went to a debt consolidation place and set a fixed payment, but that would fall under something different than Consumer Finance. All closed installments raise scores not drop them regardless of title. If anyone has any documentation to show other wise please msg them to me or post them here.
Message Edited by ilovepizza on 05-18-2007 01:49 AM
ilovepizza wrote:
Hmm. If paid and closed, it is good history, which raised your score. Removing it might lower your score and probably will. Personally I would never delete anything with good history. Anything with good history is better for your score. If you have a Consumer Finance Company high interest loan, PAY IT OFF, Close it! While it won't hurt your score, lenders will shy away from you until it is closed. After it is closed, it can only help your score.It might be your auto loan too falling under finance company, ect installments. Open loans drop scores because they are debt. That simple. Pay it off and score will come up. I have never heard of any installment after being closed dropping a score if it was paid on time. Maybe if someone went to a debt consolidation place and set a fixed payment, but that would fall under something different than Consumer Finance. All closed installments raise scores not drop them regardless of title. If anyone has any documentation to show other wise please msg them to me or post them here.
Message Edited by ilovepizza on 05-18-2007 01:49 AM
Maybe you can give your insights on this Tuscani. This raises a very interesting question! If FICO scoring models/formulas can distinguish btw prime and subprime loans (i.e. consumer finance companies like say citifinancial), shouldn't they able to distinguish btw prime discover or amex cc's versus subprime cc's such as orchard bank or first primere when arriving at a score? I have read on other threads FICO does not punish someone for having one, some or too many subprime cc's but they do for subprime loans. Just food for thought
Tuscani wrote:
ilovepizza wrote:
Hmm. If paid and closed, it is good history, which raised your score. Removing it might lower your score and probably will. Personally I would never delete anything with good history. Anything with good history is better for your score. If you have a Consumer Finance Company high interest loan, PAY IT OFF, Close it! While it won't hurt your score, lenders will shy away from you until it is closed. After it is closed, it can only help your score.It might be your auto loan too falling under finance company, ect installments. Open loans drop scores because they are debt. That simple. Pay it off and score will come up. I have never heard of any installment after being closed dropping a score if it was paid on time. Maybe if someone went to a debt consolidation place and set a fixed payment, but that would fall under something different than Consumer Finance. All closed installments raise scores not drop them regardless of title. If anyone has any documentation to show other wise please msg them to me or post them here.
Message Edited by ilovepizza on 05-18-2007 01:49 AMI wouldn't agree that "All closed installments raise scores not drop them regardless of title".Once it becomes a closed account instead of open you can take a score hit.However, IMO paying off or down on installment loans has no effect on our FICOs. In fact, My brother paid off a car loan after having it for a year. He had $13,000 left on it. EX dropped 50 point... EQ dropped 30 points... and TU 20 points. Believe me FICO loves a good mixture of accounts. Luckily his scores rebounded a few months later so it was short lived!
Very interesting, how did you find this out? Personally, do you think it would be fair for consumers if FICO had the capability to distinguish btw prime and subprime for loans and cc's and changed their scoring models accordingly? For example, reward those who have more prime TL's than those who do not.
Tuscani wrote:The FICO formula does not distinguish between prime/subprime per se. The way it identifies a 'consumer finance' account is through the bureau subscription code -- the lender's ID# at the bureau -- that, among other things, indicates what kind of business it is. (This is also how mortgage and auto inquiries are distinguished from other inquiry types.) I believe the reason why the suggestion above won't work is because the portion of these codes that provide this identification are industrywide and not unique to a particular lender, although a lender typically has multiple subscriber codes for different parts of the business. So, for example, while the score can tell if the lender is considered a consumer finance company, it can't identify a particular product of that lender's as prime/subprime.