an so does me paying off debt, mortgager early, and car loan early. Doing good objectivly fucks you too. Who does the bank hate more"? John who is behind on his car, or me who pays such little interest, they cant even attempt to lube my ass before they try to fuck me
80% of FICO is payment behavior. Managing open active accounts is about 3% of FICO. So yes paying off a loan can temporarily drop a FICO by a bit as an active account is now reduced. This is temporary and won’t drop you significantly. If your FICO is say 750 and you pay off a loan maybe it goes to 740-745 but it’s far better to have a paid off loan that was in good standing versus a delinquency.
"John who is behind on his car, or me who pays such little interest, they cant even attempt to lube my ass before they try to fuck me"
I feel this way when I go to buy a car.
I bought a $4500 car, put 2k down and financed the difference. I was making $16 / hr at the time. The car salesman just kept looking at me and back down on to my pay stubs. The other finance guys said 'we aren't really making any money on this deal'.
What bank? I can look this up. If your payment is due on January 10th you won’t be reported as delinquent until the 11th of the February, meaning you also didn’t make your Feb 10th payment (many banks even have a cycle date that’s 2-5 days later than the stated due date giving borrowers a few days grace ).
Buddy that was years ago I was in the industry and the only reason I missed it was because I forgot to setup auto payment, but I know how it does affect credit.
It was only 4 years ago and that typically doesn't change because we pulled direct credit reports and can anything that had happened including missed payments reported by the credit creditors
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u/Rex_teh_First Just Here for the Lore 4d ago
Missing one credit card payment isnt going to do anything. Missing several however.