Help me decide guys. - credit score

[FreedomPenguin]

My Maverick is scheduled April 7 build week, I am able to pay my house off in 2 weeks Feb 26.

Should I wait to pay it off? Save like one or two months payment so it won’t drop my score before applying for loan? Usaa has 45 day period, so I have 45 days to apply and hold loan.

also, when you pay house off, how long does it even take to show up on credit report?

or just pay it off, potentially lose 20-50 points and not worry. I just don’t want to be bumped into a stupid higher rate.

but if it’s truly not a real concern then I’d like to know people’s experiences

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[RideSolo]

Why should paying off your house lower your credit score? That's a good thing, paying off debt is always a good thing.

 

[FreedomPenguin]

It kills it from what I read, legit 20-100 point drop. I want to pay it off though, just because.

but if what I read is true. I want to hear actual experiences.

credit companies clearly want people to swim in debt in lieu of higher scores lol. Makes them money I guess

Why should paying off your house lower your credit score? That's a good thing, paying off debt is always a good thing.

 

[Scott Asheville]

Fellow USAA member for 40 years here. Happily getting my senior SSA (subscriber savings account) distribution checks these days! I call them my old fogey checks.

Before I'd take a USAA loan, I'd shop around at a local credit union or two. I'd also ask the dealer what he can do for you. Remember that dealers get some of that money back, and they might lower your sales price to compensate. Hey, it's just a few minutes on the phone to get other options.

Paid off my mortgage years ago and never looked back. And it never affected my credit score a whit. Ditto for car loans. I left all that stuff behind and still have a stellar score. All you really need is a single credit card that you pay in full every month - that will get you a top score over time.

BTW, folks. If you don't keep your credit locked, woe unto you when you're a victim of credit fraud. Locking and unlocking your credit at the three major agencies is free and easy. It locks down credit applications in your name. Protect yourself.

 

[Ozarkbeard]

Why should paying off your house lower your credit score?

Not having any (good) mortgage history at all in your credit history can ding it a bit. But a closed & paid on time mortgage that's recent enough to still show in one's credit history should be a plus.

Closing long-standing credit card accounts may cause your score to take a hit.

 

[rody]

I would probably wait and see how things develop. In the meantime, I’d check with rocket mortgage customer service to see if they might have any advice or options for you in this situation. They might be able to guide you on the best steps to take moving forward.

 

[Solaryellow]

1.) What are the rates on the house mortgage and the car loan?

2.) How high or low of a score do you have?

3.) When I paid my hose off four years ago (17 years early and I was thrilled) my credit score dropped a good 20 some points the next month, but those points came back in no time.

Me? Most likely I'd pay off the house and w/o knowing a thing about your mortgage, I'd bet you save a lot more each month from interest if you paid it off than not.

 

[dochawk]

Other than household expenses paid off a couple of times each month (or even prepaid), iI hadn't used any credit at all since paying off the Miata in 2012, although I suppose my student loan (last semester was in '99) was still around in a trial amount until I paid it off , naturally, the night before the covid freeze.

Anyway, with nothing but current credit cards paid in full monthly or sooner (0-3% utilization rate) and the paid off student loan, I was well past 800 on the normal scores.

Car loans use a different scale, on which it was nearly (but under) 800.

how many categories of credit are on your report is a significant factor, but if you are paying off a house, with no other dings except applications, I can't imagine you're not going to qualify for the top rate. I think that takes either 720 or 680, in general.

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