Biggish score bump at completion of car loan?

[Sidewinder]

I've heard rumors that my scores (727 EQ,  736 TU;  747 EX) will go up considerably after I finish paying off my ≈13K car loan, the final payment being due this September.  "Because you'll have a completed loan on your history!!"

 

Well duh, but I've always - over the entire six-year course of the loan - made all of my payments on time; figuring that's played a major role in the incremental increases in my score through those years. 

 

Is there really some sort of "bonus bump" after the loan is all paid & closed?  Discernible even when the loan has already performed perfectly?

[centex]

If anything, there will more likely be a small decrease in score if there are no other active loans. 

[hegemony]

if you have a thick file, don't expect an increase and if this is your only installment loan your score may decrease as you'll be in a different score segment.

[Sidewinder]

17 hours ago, centex said:

there will more likely be a small decrease in score

 

12 hours ago, hegemony said:

your score may decrease

 

Gross. 

[centex]

7 hours ago, Sidewinder said:

 

 

Gross. 

Oh the bright side...it becomes an excuse to go get another toy and do the loan at basically free money.  It wasn't the reason I bought the Spider, but it is what I am telling people it was  

 

"Seriously, it WAS the prudent thing...the F-Type is about to see the note burned and the presence of an active loan saves a few points.  Thus, from the credit score perspective, I really DID need another toy."

[hdporter]

5 hours ago, centex said:

"Seriously, it WAS the prudent thing...the F-Type is about to see the note burned and the presence of an active loan saves a few points.  Thus, from the credit score perspective, I really DID need another toy."

 

That's a cost/benefit analysis where I suspect your thumb sat heavily on the scale ... 

[centex]

5 hours ago, hdporter said:

 

That's a cost/benefit analysis where I suspect your thumb sat heavily on the scale ... 

If I had been so inclined, I actually could have flipped it the next day and pocketed a few thousand bucks.  It still amazes me where prices are on the orphans...

[monacho]

I paid off my only car loan at the time last September and saw my FICO 8 scores drop 20-25 points at the time.  At the end of October I financed another car and saw my FICO scores increase and my KreditKarma scores decrease.

 

Apparently FICO and Vantage scores aren't the same thing

[hdporter]

7 hours ago, monacho said:

Apparently FICO and Vantage scores aren't the same thing

 

Vantage is the Vanillin of credit scoring.

[cw73]

If it is your only installment loan, you will take a hit.  I took a 35 point hit.  There is a recent thread on here about it.

[pwd847]

Not the most relevant data point, but.....

 

I had 6 student loans that I never made a payment on in my life.  All 6 were in good standing with no lates.

 

I paid all 6 off at once, and took 25 point increase(approximately).

 

These were the only 6 installment loans that were on my report.

Edited July 20, 2021 by pwd847

[hdporter]

9 hours ago, pwd847 said:

Not the most relevant data point, but.....

 

I had 6 student loans that I never made a payment on in my life.  All 6 were in good standing with no lates.

 

I paid all 6 off at once, and took 25 point increase(approximately).

 

These were the only 6 installment loans that were on my report.

 

With FICO and installments, it's always a bit of a crap shoot, but I'd suggest that when the dust settled, the pay down of the loans, which had been at their full original amounts (essentially "maxed out"), trumped all other factors.