Does a car loan that is paid off effect my credit? I have another small installment loan.

[Anonymous]

I just paid off my Ally car loan of $11,666.00. My credit/debt ratio is 15%. I have an installment loan with World Finance. Will this effect my credit score? I would like to get down to 7%. Thank you.

[Anonymous]

My car loan was paid off in May, 2019. My score dropped about 32 points or so. It was my only credit except for CC's. Slowly, it has been increasing.

[simplynoir]

As long as the installment loan is reporting paying off your car loan should see minimal impact to your scores

[Brian_Earl_Spilner]

As long as you have an installment loan, you'll keep the scoring boost for credit mix.

[M_Smart007]

As long as you have the "open" installment loan with World Finance, you should be golden

[M_Smart007]

And Welcome @Anonymous To myFICO forums!

[Anonymous]

Looks like paying off an auto loan would lower your credit risk. I am going try to get a new title or other loan to pay off my credit card debit to get it around 7% ratio.

[donkort]

Try for under 5% utilization.

My scores went up after going below both 6% and 5% utilization.

I'll let you know what happens when it goes below 4%

[Anonymous]

Whether your score goes up or down depends on your aggregate installment utilization before and after.

[nupey10]

It can.  I know it did for me twice when I paid off my vehicle.  Each time I had a strong credit mix of loans and cards.  The first time dropped me by like 20 pts or so.  Just recently I paid off another vehicle and my scores dropped 11-15 pts.  The first time scores rebounded in 2 months and were higher than previous.  Still waiting on a rebound this time.