Credit Advice

No it may actually go down. Fixed loans are usually good for credit since they show timely payment history. Paying down credit card debt which is revolving will help your score.

I can't speak too much for ficos, but I can tell you how we would have looked at this when I was reviewing credit card applications. Mortgage lenders, insurance companies, and other people who review your file will all have different things they look for on your credit file.

I'm guessing you don't have much of a balance remaining on the loan since you are going to have it paid off in a few months. Going from <1k in installment loans to $0 won't have much impact, but it will have a bigger impact then going from, say, 1200 to 1000. The biggest change will be in calculations of your disposable income now that you will be rid of a monthly obligation. That will probably be a bigger deal in internal models that evaluate your request than in your fico. Your credit report doesn't have your income, so Fair Isaac doesn't know as well as your lender or underwriter how much of a difference that change will make.<br/>
It's all relative, though. Its a bigger deal for someone making 20k to be rid of a $250/month payment than someone making 100k being rid of a $600 payment.

open a credit card... even if you cut it up and never use it.

So much of our credit score is made up of payment history so not have a payment to make can actually keep your score where it's at or even possibly lower it. Also keep in mind to have the best score you want to have a good variety of credit (installment, revolving, mortgage). If you don't like credit cards, open a card at a store you know you'll never buy anything from.