Do you lose FICO points when you pay off your only car loan

[MarcinXP]

Hello all,

I have a quick question. Recently I paid off my car loan and now it is showing closed. I lot 31 points on creditkarma but I believe that is because creditkarma only bases your FAKO scores off open accounts not closed so my payment history shows better since I had one late over last 5 years..but my AAOA dipped down...anyway..not too worried about creditkarma..but does FICO lose points when you pay off your car? Now that I no longer have any installment loans and just revolving accounts does it hurt and should I try to get an installment loan just to have one reported. Not ready to buy another car. My car is 7 years old with 66K and in excellent condition. I'm thinking 3-4 years before I go to Ford Credit again and get another car.

[Repo-ed]

Personally, I put absolutely 0 weight in to CK info.

If it isn't a FICO score, it just doesn't matter.

That being said, so long as NOTHING else has changed in your file, you possibly got rebucketed, but hard to say.

[MarineVietVet]

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@MarcinXP wrote:

Hello all,

I have a quick question. Recently I paid off my car loan and now it is showing closed. I lot 31 points on creditkarma but I believe that is because creditkarma only bases your FAKO scores off open accounts not closed so my payment history shows better since I had one late over last 5 years..but my AAOA dipped down...anyway..not too worried about creditkarma..but does FICO lose points when you pay off your car? Now that I no longer have any installment loans and just revolving accounts does it hurt and should I try to get an installment loan just to have one reported. Not ready to buy another car. My car is 7 years old with 66K and in excellent condition. I'm thinking 3-4 years before I go to Ford Credit again and get another car.

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Closed accounts are still counted into your credit mix although open, active accounts are weighed more heavily.

I would only say congratulations on less debt! Don't go back into debt  for a possible few points.

[crunching_numbers]

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@MarcinXP wrote:

Hello all,

I have a quick question. Recently I paid off my car loan and now it is showing closed. I lot 31 points on creditkarma but I believe that is because creditkarma only bases your FAKO scores off open accounts not closed so my payment history shows better since I had one late over last 5 years..but my AAOA dipped down...anyway..not too worried about creditkarma..but does FICO lose points when you pay off your car? Now that I no longer have any installment loans and just revolving accounts does it hurt and should I try to get an installment loan just to have one reported. Not ready to buy another car. My car is 7 years old with 66K and in excellent condition. I'm thinking 3-4 years before I go to Ford Credit again and get another car.

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Any installment loan is good for mix of credit. (student loan, mortgage, furniture...)  It is a small part of the FICO equation, and the closed account will still count some. Not worth getting worried about though. (Especially if you have one of the other installment type accounts).

[golo]

I don't mean to rain on your parade,but check my tread on rebuilding your credit,i just paid off my car this month and my credit went down 24 points.Of course YMMV

[RobertEG]

The debate goes on!

You will see opinions ranging from only open installments count in mix of credit, closed installments help to a lesser degree, all the way to they dont add to mix at all.

Mostly based on individual anecdotal experiences.

I simply dont know the answer, and have never seen FICO respond directly to that question.

[Anonymous]

From what I have sen, closing your only open installment loan will often lower your fico. Although I have sen it increase someone's score.

[MarineVietVet]

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@RobertEG wrote:

The debate goes on!

You will see opinions ranging from only open installments count in mix of credit, closed installments help to a lesser degree, all the way to they dont add to mix at all.

Mostly based on individual anecdotal experiences.

I simply dont know the answer, and have never seen FICO respond directly to that question.

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There is no debate. It's not based on anecdotal stories.

The former administrator of this site said that closed accounts still count in your credit mix although open, active accounts are weighed more heavily. I've posted this many, many times.

I can't imagine a better source for this information. If anyone doesn't want to accept his word on this I can't change their closed mind.

[RobertEG]

Thanks Vet!

That is the type of verification that is needed for we of closed minds.