What happens to your score when you pay off your auto loan

[Anonymous]

I had a $11,000 car loan with Ally. I paid that in 20 out of 60 months. I did this in Feb, 2020. I have a small installment loan with World Finance. What will happen to my credit score once it gets posted with the credit bureaus? Does paying off early help with buying another auto? Today I have a score of 709 TU 698 EX 697 EQ. I never was late making payments this and all my credit cards. Thank you for your time.

[AllZero]

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@Anonymous wrote:

I had a $11,000 car loan with Ally. I paid that in 20 out of 60 months. I did this in Feb, 2020. I have a small installment loan with World Finance. What will happen to my credit score once it gets posted with the credit bureaus? Does paying off early help with buying another auto? Today I have a score of 709 TU 698 EX 697 EQ. I never was late making payments this and all my credit cards. Thank you for your time.

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Unable to answer because you have another open installment loan.

What is the utilization % on your small installment loan? Is that your only open installment loan?

[Anonymous]

Paying off early wont really help with a new auto loan so much,

other than it will be freeing up DTI monies to allow you to make the payment.

If your score rises, then that could help with getting a lower apr.

But that is dependant on the bank loaning it to you and their terms etc.

[Anonymous]

Paying it off WILL help you with a new auto loan. First of all, the DTI of carrying the other loan will be factor in wether you get approved at all, and your interest rate. Its very common for the second auto loan if you are carrying two loans to have slightly less favorable terms. Now you do not have to worry about that all.

[Anonymous]

Hello.. I just paid off an Ally auto loan. My score dropped 6 points from Experian. I have another small personal loan from World Finance. Would paying off an auto loan drop my score? Thank you for your time.

[egghead88]

It depends... 5 primary credit data categories used to calculate a FICO Score: Payment History (35%), Amount of Debt (30%), Length of Credit History (15%), Amount of New Credit (10%) and Credit Mix (10%). FICO Scores consider the different types of credit accounts being used or reported, including credit cards, retail accounts, installment loans and mortgage loans. Your credit mix will be more important if your credit report doesn't have a lot of other information to base a FICO Score on.
So by paying off a installment loan you could possible change your credit mix. 

[Anonymous]

Say I was Ally or Capital One. Would not look better when a person pays off his/her auto loan? Will this six point drop be short term since I paid off this auto loan? Now my total debt is $5,500 instead of $16,000. I still have an installment loan with World Finance. Still have a mix. Thank you.