Update : Score increase due to reduce utilization on credit cards (5%) TU 707 EQ 702 and EX 690.
I have 6 students loans total balance $600, that is 20 years old. I'm looking to pay off in couple days. When I make this payment will my scores drop? These are not my only installment loans, I have a car loan that is 6 months.
My current scores are TU 702, EQ 700 and EX 686 (students loan not on EX).
Info purposes only: I know my scores should go up some, one of my cards reported last month with a 47% individual utility (overall 25%). Should up date in about 5 days to 9% individual utility (overall 5%)
Starting Score: 513 Ex 520 Eq 534 Tu
@josie wrote:I have 6 students loans total balance $600, that is 20 years old. I'm looking to pay off in couple days. When I make this payment will my scores drop? These are not my only installment loans, I have a car loan that is 6 months.
My current scores are TU 702, EQ 700 and EX 686 (students loan not on EX).
Info purposes only: I know my scores should go up some, one of my cards reported last month with a 47% individual utility (overall 25%). Should up date in about 5 days to 9% individual utility (overall 5%)
I wouldn't expect a drop from your student loans being paid off, as you have other active installment loans. They'll continue to stay on your reports as positive ( closed ) accounts.
Also congrats on finally paying them down to 0$ 
Thank you will update this thread when student loans update on credit reports next month.
@josie wrote:I have 6 students loans total balance $600, that is 20 years old. I'm looking to pay off in couple days. When I make this payment will my scores drop? These are not my only installment loans, I have a car loan that is 6 months.
My current scores are TU 702, EQ 700 and EX 686 (students loan not on EX).
Info purposes only: I know my scores should go up some, one of my cards reported last month with a 47% individual utility (overall 25%). Should up date in about 5 days to 9% individual utility (overall 5%)
I think
(a) you will lose points in the FIC0 8's and 9"s because your aggregate installment utilization percentage, which is now probably well below 10%, will exceed 10%, and
(b) you will gain points in mortgage scores because the number of accounts with balance and the DTI will both be dropping.
@josie wrote:I have 6 students loans total balance $600, that is 20 years old. I'm looking to pay off in couple days. When I make this payment will my scores drop? These are not my only installment loans, I have a car loan that is 6 months.
It depends upon your current aggregate utilization ratio for all your installment loan accounts and your aggregate utilization ratio for all your installment loan accounts after you pay off the SLs. If the resulting ratio jumps above a higher threshold, you'll lose a small chunk of FICO points.
Say your installment loan utilization is 19% now, and, after you pay off the SLs, the only open loan left, the auto loan, is at 90% utilization. Your FICO scores would dip, because your aggregate installment loan account utilization jumped from being mostly paid off (19%) to barely paid off (90%).
Info purposes only: I know my scores should go up some, one of my cards reported last month with a 47% individual utility (overall 25%). Should up date in about 5 days to 9% individual utility (overall 5%)
Yes, you should pick up some points for reducing revolving account utilization. You may also pick up a few points for having 6 fewer accounts with balances.
Congrats on paying off your SLs! The good news is that your SLs will help with AAoAs until they age off your CRs in up to 10 years from the month the loans are closed.
@SouthJamaica wrote:
(b) you will gain points in mortgage scores because the number of accounts with balance and the DTI will both be dropping.
@SouthJamaica, because DTI doesn't have anything to do with scoring, I'm guessing you meant to say something else.
@HeavenOhio wrote:
@SouthJamaica wrote:
(b) you will gain points in mortgage scores because the number of accounts with balance and the DTI will both be dropping.@SouthJamaica, because DTI doesn't have anything to do with scoring, I'm guessing you meant to say something else.
I stand corrected. OP will (a) gain points in mortgage scores because number of accounts with balance is dropping, and (b) improve DTI.
Update 7/8/21: TU 9 point drop 698 and EQ 12 point drop 690. No update yet on EX.