Do I HAVE to have an AUTO if I have a MORTGAGE reporting?!

[Girlzilla88]

Title pretty much states it all....I would like to pay my Auto loan off early but would that be a penatly for not have ANY auto or as long as I have my Mortgage then I have an Installment type loan and I will be ok and not have to worry about being penalized/drop?!      Thank you

[AllZero]

You should be okay with the mortgage. 👍

You may want to calculate what your aggregate utilization % will be before and after.

[Girlzilla88]

@AllZero     My DTI the Mortgage will be taking the most 'chunk' of it but I do want to at some point get one card reporting and the Car paid off so I can see about doing a specific loan which will need to see as low of a DTI as I can report.     I just don't want it to damage my Score negatively if I paid it off because of course Score will be a factor as well (but this is after I put it back to 750 plus XD

[1GaDawg85]

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@Girlzilla88 wrote:

Title pretty much states it all....I would like to pay my Auto loan off early but would that be a penatly for not have ANY auto or as long as I have my Mortgage then I have an Installment type loan and I will be ok and not have to worry about being penalized/drop?!      Thank you

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As long as you have a mortgage reporting, that is what matters. 

[SouthJamaica]

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@Girlzilla88 wrote:

Title pretty much states it all....I would like to pay my Auto loan off early but would that be a penatly for not have ANY auto or as long as I have my Mortgage then I have an Installment type loan and I will be ok and not have to worry about being penalized/drop?!      Thank you

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No you don't need it.  Yes you can go get yourself a clean title.

The one case where it might be important would be if your combined installment utilization between the 2 loans was under 10%, and dropping the car loan and leaving the mortgage would put you over 10%. Otherwise, you're good to go.

[Girlzilla88]

@SouthJamaica    Lmao I wish my Mortgage was already at or near 10%  XD

[SouthJamaica]

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@Girlzilla88 wrote:

@SouthJamaica    Lmao I wish my Mortgage was already at or near 10%  XD

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Well I didn't think so, but I just wanted to cover my bases

[Anonymous]

One minor point to make is that when you close your auto loan it's possible you'll see slight drops on your auto enhanced version scores.  On some of the models it may be only a couple of points, where my EX Auto 8 dropped 14 points, for example.

[Girlzilla88]

@Anonymous     Interesting so that is with a paid off loan?!       Did it bounce back a month or so after!?     Or it didn't until you added a new one?!      

[Anonymous]

That was with closing my only open auto loan.  Like the OP, I had an open mortgage present that wasn't anywhere near close to being paid off.  I now have 4 or 5 closed auto loans on my CR, but none open.  I'm not sure if the closed ones help my auto scores (or any scores) but I am positive that on my profile not having an open auto loan definitely takes points away from Fico auto scores.