Why would paying off two accounts lower score?

Anonymous · ‎04-11-2020

Paid off a 24 month personal loan and a credit card that was at 80 utilization due to 0%. I thought it would lower some now that the accounts are updated on the reports. Maybe the age of the personal loan affecting total age?

Mv350 · ‎04-11-2020

If you no longer have an open installment loan reporting on your report. It could have a negative effect. Also if you no longer have any balances on revolving accounts, it could have a negative effect.

To have the greatest effect on your scores, it should be 3 revolving and 1 installment loan. With at least 1 card reporting a small balance.

AODFCU 3%CB Visa Signature $10,000 @9.99%

Langley FCU Cash Back Visa $7,500 @ 15.00%

Sold my soul for the Gold card, and was given a measly $666 VPSL

seattletravels · ‎04-11-2020

If that was your only loan, paying it off would have a negative impact.

BECU Visa : $40,000 Date Opened: 02/2020

Delta Reserve : $20,000 Date Opened: 01/2020

Amex Blue Cash Preferred : $19,900 Date Opened : 07/2013

Chase Freedom Unlimited : $19,300 Date Opened : 02/2020

Citi Double Cash : $19,000 Date Opened : 06/2015

B of A Cash Rewards : $16,000 Date Opened : 12/2013

Barclaycard Ring : $10,000 Date Opened : 06/2017

Citi Simplicity : $9,000 Date Opened : 10/2011

Commerce Special Connections : $8,000 Date Opened 04/2015

Discover It : $7,100 Date Opened : 04/2013

Marriott Bonvoy Boundless : $5,500 Date Opened 07/2013

Delta Platinum : $2,000 Date Opened : 08/2018

Last App: BECU 02-26-2020
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M_Smart007 · ‎04-11-2020

@Mv350 wrote:
If you no longer have an open installment loan reporting on your report. It could have a negative effect. Also if you no longer have any balances on revolving accounts, it could have a negative effect.

To have the greatest effect on your scores, it should be 3 revolving and 1 installment loan. With at least 1 card reporting a small balance.

@Mv350

Mv350 · ‎04-11-2020

@M_Smart007 wrote:
@Mv350 wrote:
If you no longer have an open installment loan reporting on your report. It could have a negative effect. Also if you no longer have any balances on revolving accounts, it could have a negative effect.

To have the greatest effect on your scores, it should be 3 revolving and 1 installment loan. With at least 1 card reporting a small balance.
@Mv350

Can I have a monocle now?

M_Smart007 · ‎04-11-2020

@Mv350 wrote:
@M_Smart007 wrote:
@Mv350 wrote:
If you no longer have an open installment loan reporting on your report. It could have a negative effect. Also if you no longer have any balances on revolving accounts, it could have a negative effect.

To have the greatest effect on your scores, it should be 3 revolving and 1 installment loan. With at least 1 card reporting a small balance.
@Mv350
Can I have a monocle now?

@Mv350 .. I will ask Colonel Klink

Anonymous · ‎04-22-2020

And for max scoring, the loan should be <9%.