No mortgage or auto loan on CR?

[Anonymous]

One point of clarification for the OP... what you are referring to is having an open loan on your CR.  In your original post you asked what would happen if you didn't have a loan on your CR, which suggests that the closure of such loans would eliminate it from your report.  Closed loans are usually expected to remain your your CR for 10 years following closure and during that span of time they contribute to your Credit Mix exactly the same way they would if they were still open. 

Any score loss that comes from the payoff of one's only loan is due to the Amounts Owed sector of the Fico pie, where you wouldn't be receiving the score boost from having an almost-paid-off installment loan any longer once it's closed.  This factor does not impact Credit Mix though.

[Anonymous]

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@Anonymous wrote:

One point of clarification for the OP... what you are referring to is having an open loan on your CR.  In your original post you asked what would happen if you didn't have a loan on your CR, which suggests that the closure of such loans would eliminate it from your report.  Closed loans are usually expected to remain your your CR for 10 years following closure and during that span of time they contribute to your Credit Mix exactly the same way they would if they were still open. 

Any score loss that comes from the payoff of one's only loan is due to the Amounts Owed sector of the Fico pie, where you wouldn't be receiving the score boost from having an almost-paid-off installment loan any longer once it's closed.  This factor does not impact Credit Mix though.

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+100

@disdreamin and it's not very reactive on the mortgage Scores. Where you see the fluctuations with the big points is on 8/9. You probably won't see a big change on your mortgage Scores. if anything, they'll probably be an improvement due to one less account with a balance. 

[disdreamin]

Oh that's too funny about the WTFico. I mean, I know the original one but that was a new twist I'd never seen.

For the mortgage score, if you mean the FICO score 2 I can see that for Experian and it's at 821 currently.

[disdreamin]

Thank you for clarifying about how losing that open loan will impact my report. I was under the assumption that once it was PIF it would hurt my mix since there wasn't an open loan. I'll re-up with being able to check my scores right before I pay off the car and watch it, just out of curiousity, to see what losing that active loan does to my scores. At that point I may spring for monitoring for a couple months to be able to watch all the scores and see what they do. It'll be an interesting data point (unless my car dies and I need to re-up for another auto loan, perish the thought).

Thanks again to all for the useful info!

[Anonymous]

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@disdreamin wrote:

Thank you for clarifying about how losing that open loan will impact my report. I was under the assumption that once it was PIF it would hurt my mix since there wasn't an open loan. I'll re-up with being able to check my scores right before I pay off the car and watch it, just out of curiousity, to see what losing that active loan does to my scores. At that point I may spring for monitoring for a couple months to be able to watch all the scores and see what they do. It'll be an interesting data point (unless my car dies and I need to re-up for another auto loan, perish the thought).

Thanks again to all for the useful info!

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@disdreamin yeah a lot of people misunderstand it. It won't affect your credit mix because closed accounts count towards credit mix.

Where you are receiving the bonus in 8/9 is from the amounts owed sector and like I said it's nowhere near as reactive on the mortgage Scores.

Sometimes there's a small loss, but in most circumstances I expect a small increase due to the reduced number of accounts with a balance.

But all profiles are different, so it is possible for things to be a little different, but I don't see a big change on the mortgage Scores for you. 

look forward to your results. 

[disdreamin]

Honestly, my profile isn't particularly robust. Currently I have four "major" cards - BCP, Citi DC, 2xChase - and a Target Redcard store card. Beyond that it's just the mortgage and auto loan. I'm genuinely curious to see how it all shakes out with the changes to active accounts on my reports hopefully coming up in the next 6-8 months.

[Anonymous]

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@disdreamin wrote:

Honestly, my profile isn't particularly robust. Currently I have four "major" cards - BCP, Citi DC, 2xChase - and a Target Redcard store card. Beyond that it's just the mortgage and auto loan. I'm genuinely curious to see how it all shakes out with the changes to active accounts on my reports hopefully coming up in the next 6-8 months.

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@disdreamin to be honest with you, you meet the minimum recommendations for an optimal profile per my recommendation and opinion.

You have at least 5 revolvers, with at least 4 of those being bankcards. You also have at least 1 loan and at least a total of 7 accounts paid as agreed.

and since you have bankcard, retail, non-mortgage loan, mortgage loan, you have at least 4 types for credit mix. Beautiful profile in my opinion, and with age it will continue to increase beautifully! Definitely don't sweat a speedbump. 

it's more robust than you think. 

(I am assuming the target red card is a Revolver correct? that's not the ACH linked card?)

[Anonymous]

@disdreamin just out of curiosity what is the age of your oldest account and what is the age of your oldest Revolver? And what is the age of your youngest account and youngest Revolver?

but I was just going back over the thread, you're going to be fine even with both of those loans closed, imho. You'll take a little hit on 8/9 but you're still going to be top-tier for everything. You have no worries, just keep doing what you're doing. 

[disdreamin]

@AnonymousI have to laugh because I was thinking along the same lines and almost posted a reply earlier.

I pulled up CK to check the AAoA and for active accounts and I think it will actually increase when the mortgage and car loan are PIF/closed. I have two oldest revolver accounts, the Citi and AmEx are both ~30 years. The youngest revolver is the Chase FU and that one is almost 6 years. AAoOA is currently a little over 14 years.

Mortgage is 8 years this month, and car loan is ~3.5 years. With those gone, I think the age for active accounts should actually jump up a few years. That's kind of ironic, eh?

[Anonymous]

This is true and that might help your VS3, but for fico, it usually includes open and closed.

There are a few instances where it considers an open account metric in addition to a Metric which includes both opened and closed, but for most things it’s looking at everything on your report both opened and closed. And your profile seems bullet proof, like I said keep doing what you’re doing.