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My coworker insisted paying off a $5,000 car loan early would hurt my score, but after I did it last quarter, my FICO actually jumped 18 points.
He argued the closed account would shorten my credit history, but the drop in my overall debt load seemed to matter more to the scoring model, so what's the real deal with installment loans?
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olivia47817d ago
Less debt always wins, in my book.
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bettymurphy25d ago
My cousin had a similar thing happen with a student loan. Paid off the last two grand early and his score went up like 15 points. I mean, maybe the history thing matters more if it's your only account, but having less debt always seems to help.
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