Thread: loan paid - score effect

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Originally posted by Mark LA
how did paying off an auto loan effect your credit scores with the three agencies?
thank in advance everyone for the info. [/B]
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If anybody has any experience - I 'd greatly appreciate it.
Considering refinancing auto loan with Generations Bank - they don't report to the cra's - so it would look like i paid off the loan.
Wondering how it would effect my score?

I just paid off an auto loan last month.. It was 13k original amount 10k balance, paid off to 0 after 15 months.. My score dropped ~ 15 points.. Go figure..

jmart

How was the auto loan listed on your credit reports?

Best regards,
Mirage

It was listed as paid in full. 0 balance.. I don't know if I got nailed b/c I paid it early...that loan is my only installment loan.....maybe they like you to have at least one installment loan open..

jmart

It's surprising that your score would drop because you paid off an installment loan. If anything, that would reduce your risk of default. It's one less payment you have to make which frees up $$ to pay other debt.

Originally posted by daveberk
It's surprising that your score would drop because you paid off an installment loan. If anything, that would reduce your risk of default. It's one less payment you have to make which frees up $$ to pay other debt.

Daveberk,

Obviously, you are in denial. Despite all the evidence to the contrary, you still persist in attempting to apply logic to the CRA's actions. ;-)

Dancer

Same goes for scoring

Originally posted by Dancer


Daveberk,

Obviously, you are in denial. Despite all the evidence to the contrary, you still persist in attempting to apply logic to the CRA's actions. ;-)

Dancer