Installment loan payoff

Billycatbell · ‎07-19-2015

Hello. I currently have an personel installment loan and a student loan reporting on equifax. I have 16 credit cards/ store cards at present time. If I pay off personel installment loan leaving only student loan, will this cause a drop in my score? Thanks

aav · ‎07-19-2015

It is likely to drop although having the remaining personal loan may make it less of a dramatic drop. I have a small balance on a student loan that I could easily pay off but I'm only paying the minimum until I pick up an auto loan soon. It's a tough reality, but having a mix of credit is just part of the credit game.

EQ - 834 TU - 823 EX - 822
Amex NPSL Amex BCP - 25,000, Amex EDC - 12000, Diner's Club Premier -35,000, Ritz Carlton - 22,500 Discover 25,100, Chase Reserve -31,000 Total Rewards 13200, Barclay 10000 Citi Diamond P 8,900

jamie123 · ‎07-19-2015

I agree with aav. You might see a small drop but nothing dramatic as long as you have the student loan reporting.

Starting Score: EQ 653 6/21/12
Current Score: EQ 817 3/10/20 - EX 820 3/13/20 - TU 825 3/03/20

Revelate · ‎07-19-2015

That really depends what utilization the SL is likely at .

For reference, I got whacked hard to the tune of 25 points when my auto loan and personal loan closed, when I still had two open personal loans.

Nothing in the reason codes I've seen regarding student loans, maybe was with Nextgen or something crazy that got discarded like that, so I assume they follow the same rules as personal loans in the FICO 8 model anyway.

DeeBee78 · ‎07-21-2015

I lost 20+ points on all three reports when my previous car loan closed and my new loan didn't show up immediately. Two months later when my new loan decided to show up, I lost a further 10 points for opening a new account.

Aren't FICO scores wonderful?