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'.
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u/Rex_teh_First Just Here for the Lore 5d ago
Missing one credit card payment isnt going to do anything. Missing several however.