Is it true my score is going to drop?

CaptRon · ‎11-25-2020

iv been waiting on my paid of car loan to report (12/7) looking for a boost in scores before applying for an RV loan (need for work) and after researching the forums seems to be the consensus my scores will drop instead of rise due to being zero balance vs under the 8.9%?

so my thoughts are to go ahead and pull the trigger on the RV loan while at the same time app for some better cards than my (2) credit one cards.

just received Cap One upgrade to QS but no cli just rewards.

NFCU go rewards $3k w/12.9 % recent approval

prequalified for Amex Delta Gold & Hilton, BBVA $1,500, Disco It (burned them 4/17/15 Bk. Also burned Barclays, Citi & Synchrony

revolver uti @Anonymous

inq's EQ 1 TU 2 EX 2

income 72k

is this correct time expect a score drop? Fico8 only or x the other scores if so?

Thanks in advance for any thoughts, suggestions etc

planning to garden until my 91/3 is up with NFCU to apply for 2nd card and CLI

I did hit the love button in hopes for a cli on my GoRewards with same HP yesterday but no alerts yet.

Anonymous · ‎11-25-2020

I sort of replied to this question of yours in another thread. It all comes down to aggregate installment loan utilization. With the data provided above, I'm not sure where you stand.

If you have just 1 open installment loan currently and that loan has single-digit utilization left on it (almost paid off) and you close it, your scores will drop. If you have another open loan in addition to the one you're closing, you'd have to figure your current aggregate utilization now between those loans, then figure what it will be with the closure of the one auto loan in question. Based on that aggregate utilization shift, your scores may or may not increase/drop slightly. Whatever drop that may be, though, would no doubt be far less significant than the drop associated with paying of ones only open installment loan that's already almost paid off.

SouthJamaica · ‎11-25-2020

@CaptRon wrote:
iv been waiting on my paid of car loan to report (12/7) looking for a boost in scores before applying for an RV loan (need for work) and after researching the forums seems to be the consensus my scores will drop instead of rise due to being zero balance vs under the 8.9%?

so my thoughts are to go ahead and pull the trigger on the RV loan while at the same time app for some better cards than my (2) credit one cards.

just received Cap One upgrade to QS but no cli just rewards.
NFCU go rewards $3k w/12.9 % recent approval

prequalified for Amex Delta Gold & Hilton, BBVA $1,500, Disco It (burned them 4/17/15 Bk. Also burned Barclays, Citi & Synchrony

revolver uti @Anonymous
inq's EQ 1 TU 2 EX 2
income 72k

is this correct time expect a score drop? Fico8 only or x the other scores if so?

Thanks in advance for any thoughts, suggestions etc

planning to garden until my 91/3 is up with NFCU to apply for 2nd card and CLI
I did hit the love button in hopes for a cli on my GoRewards with same HP yesterday but no alerts yet.

If you're going to be taking out a big loan, you shouldn't be messing around with credit card applications, which are just going to lower your scores further.

The best way for you to increase your scores is to pay down your revolving accounts and to not apply for credit.

As to whether the car loan payoff is going to increase or decrease your scores, we would need to know what other installment loans there are, if any, and the loan amounts and current balances.