@Anonymous wrote:I just wanted to ask you guys about account mix and how much what I'm going to do will hurt/help. On my reports my # of accounts varies between 27 and 25, 12 of which are closed. Two of the open accounts are loans and all of the closed accounts are CCs. My question is, since my profile lacks some diversity, will paying in full those two loans send me in a downward spiral? I just don't forsee getting another loan for a while and I don't want that to damage my score which hovers in the 730 range. Or, can I expect my score to jump? BTW, the loans are $5,250 (initial amount) and $834 (initially 4k). Other information, util. <7% (PIF), Total limits 67k, 8 inqs average across reports, AAoA 2yrs.
This should probably be in another category about FICO scoring. Your loans won't be deleted from your credit report for years. I think that you still get the benefit of credit diversity while those loans are showing on your report even if they are closed out. Certainly you should not pay any sort of extra interest on the loans out of concern for your credit score. Maybe your score goes up because then the income to debt calculation shifts in your favor because you paid off the loans.
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