(updated with scores) How much of a score drop from paying off only installment account?

[iv]

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@Anonymous wrote:
Funny you state 8.6 %. So since I have 440,000 mortgage, I guess in the next 20 years. HA!

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The amount of the mortgage isn't what makes the difference there, so much as the APR and if you make any extra principal payments.

On a 30-year loan, if you didn't make any extra principal payments at all... it would take until year 28 or 29 (depending on APR) to get to 8.99% paid-off. Maybe all the way into year 30 if you got a bad rate.

(Extra principal payments, the earlier in the loan the better... are very powerful things.)

[Anonymous]

I wouldn't get too caught up on negative reason statements.  The presence of a negative reason statement simply means that the statement referenced is responsible for impacting your score 1 or more FICO points.  In many cases, these reason statements are only pointing to something that's adversely impacting score a couple of points.  Not a big deal most of the time and definitely not worth worrying about.

[Anonymous]

So I actually did some looking back at my only FICO I had access to at the time of my personal loan, Experian, and I neither took a hit or any gain from adding the personal loan. The loan was reported in 8/2017 and my score stayed the same. Then in March I lost 7 points from an Amex inquiry on the 27th, 5 points when SSFCU reported my new account on the 30th, lost another 11 points when Ollo and PlayStation cards reported closed and Capital One reported a CLI of 2000 on April 20th, gained 18 points when Amex reported my card opened and then closed with two months satisfactory payment history on May 18th, and then my credit score remained at 670 even after adding my cashRewards card until BBVA HP’d EX on 12/1 which bumped my score to 671. 

If EX is anything to go by, my credit is too damaged from baddies to have actually benefited from the personal loan. I don’t have a thin file when it comes to installments - 6 student loan accounts and two cars are still on there, all closed and paid. 

NFCU sent the check out today so we will see what happens, Best Egg takes awhile to report so with any luck, my two new cards and my CLOC will report in January so I can see what kind of affects that has on my scores and then Best Egg will report in February or March and I can give a better indicator of what happened as a result. 

[Anonymous]

@Saeren : I have some data on the closure of the only loan I had on my history.

All this happened today (multiple Experian alerts):

-81 point drop from the closed secured loan. The only loan I had.  No revolving accounts. I went to ZERO open accounts.

+51 point gain from 1 new revolving account being reported at 2% utilization. $2000 CL

So I lost about 30 points from the loan closure. You have 6 more revolving acounts reporting than I do, so I am going to take a wildly-haphazard-guess-based-on-nothing-but-a-haagen-dazs-induced-daydream and say that you won't see more than a 5 to 10 point drop from closing your only loan.

[Revelate]

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@Anonymous wrote:

@Anonymous : I have some data on the closure of the only loan I had on my history.

All this happened today (multiple Experian alerts):

-81 point drop from the closed secured loan. The only loan I had.  No revolving accounts. I went to ZERO open accounts.

+51 point gain from 1 new revolving account being reported at 2% utilization. $2000 CL

So I lost about 30 points from the loan closure. You have 6 more revolving acounts reporting than I do, so I am going to take a wildly-haphazard-guess-based-on-nothing-but-a-haagen-dazs-induced-daydream and say that you won't see more than a 5 to 10 point drop from closing your only loan.

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It's just an aggregate calculation on the installment side, independent of revolvers other than your situation of being a terribly thin file .

Generally closure only loan in FICO 8 from best case <9% utilization is worth on the order of 20-35 points give or take.

We really need to find another SSL trick lender to play reindeer games with... can't believe I was so statistically lucky as to find Alliant on my first try several years ago, but so far we just aren't having luck coming up with another one that is open to everyone.

Ah well LMCU just approved my loan that I applied for 31 days ago so will see if that one works now.

[Anonymous]

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@Revelate wrote:
It's just an aggregate calculation on the installment side, independent of revolvers other than your situation of being a terribly thin file .

Generally closure only loan in FICO 8 from best case <9% utilization is worth on the order of 20-35 points give or take.

That's interesting. And I like my FICO bucket. It's a nice bucket that is being very nice to me.

We really need to find another SSL trick lender to play reindeer games with... can't believe I was so statistically lucky as to find Alliant on my first try several years ago, but so far we just aren't having luck coming up with another one that is open to everyone.

 That SSL trick is the best thing I have read online about building credit. I certainly never read about it in all those mainstream press 'filler' articles that show up every week. (How to get better credit....blah blah same old generic advice blah.)

 I went from scratch to 2 bank-issued credit cards with an $8500 combined credit limit and a FICO 8 699 in 1 year and 27 days using that trick. And now that I know about the 8.99% utilization breakpoint from reading these forums, it's only going up from here. My credit union only requires a 740 for what they call a 'Tier 1 Rate' on a new car loan, which I might apply for next year.

Your posts to these forums are no doubt helping so many other people right now.

[Anonymous]

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@Anonymous wrote:

@Anonymous : I have some data on the closure of the only loan I had on my history.

All this happened today (multiple Experian alerts):

-81 point drop from the closed secured loan. The only loan I had.  No revolving accounts. I went to ZERO open accounts.

+51 point gain from 1 new revolving account being reported at 2% utilization. $2000 CL

So I lost about 30 points from the loan closure. You have 6 more revolving acounts reporting than I do, so I am going to take a wildly-haphazard-guess-based-on-nothing-but-a-haagen-dazs-induced-daydream and say that you won't see more than a 5 to 10 point drop from closing your only loan.

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Well I will find out soon enough. Best Egg got the check posted to my account 12/31. 

I guess its a good thing I don’t have any major credit apps planned this year. 

I thankfully don’t have skittish lenders in my wallet so I’m not terribly worried about AA. Sync would be my biggest concern but as I’m not going to poke them for more credit and I’ll be PIFing I doubt I will have an issue. 

But yeah I’ll update when they update my credit. 😂 

[Anonymous]

I'm following your journey as I'm going to be paying off my only installment loan next month.

[Anonymous]

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@Anonymous wrote:
I'm following your journey as I'm going to be paying off my only installment loan next month.

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Well I just checked and the last update Best Egg made to my payment history on the installment is 11/1 so they should hopefully be updating it soon. I need to call them soon anyway in regards to the refund I am owed for the over pay, I just slack on phone getting phone calls done...

[Anonymous]

I got a 9 point drop on Experian yesterday which I thought was odd since the alert was for a new credit card and I was at 4y1m AAoA and dropped to 3y8m and I haven’t actually taken a hit to my score for new accounts since March on any of my reports (and I’ve added 2 new cards and a CLOC which are reporting on all of them besides this one that reported yesterday) so I went and combed through my report and my personal loan is reporting closed and paid as of today. Dropped me from 671 to 662. It’s my second highest reason code for my score hurting (derog/BK is number one). So yes, it does hurt, but only because that 9 points took me out from good to fair. I’m in the garden right now so I’m not terribly concerned and with my repo falling in July, I should recover at least 9 points from losing an account with 30/60/90/120/repo/paid CO status but I thought I would add the DP. 

ETA: EQ went from 685 to 668 = 17 points for closed plus new account. I'll edit again when TU shows closed and make a bump post. I lost 4 points today for a new account being reported on TU so I'm at 702 right now. Hopefully my NFCU account doesn't report before or on the same day that TU shows my loan closed so I can get a clean report on the drop in score (I signed up for a month of myFICO Ultimate 3B so I can see what the impact of all of this is).