Paid off $12000 and now my credit dropped 42 points???

[Anonymous]

I paid it off believing my credit score would go up not down. Am I missing something here? Should I call the credit bureau? Help!!!

[Geordi]

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@Anonymous wrote:
I paid it off believing my credit score would go up not down. Am I missing something here? Should I call the credit bureau? Help!!!

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I bit more details would be nice.

[Anonymous]

I paid off an account in full (a loan for an all terrain vehicle) totalling $12000. No delinquencies on this account. I had a 728 Equifax score and now it's 686! I have one delinquency from over 5 years ago and that's it. From what I've read my score could be alot better if I didn't have so much of this kind of debt which is why I was expecting it to go up not down by paying this debt off.

[Anonymous]

According to the report, this score decrease is a direct result of the change on this account.

[Anonymous]

Was this your only open installment loan?

[Geordi]

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@Anonymous wrote:
I paid off an account in full (a loan for an all terrain vehicle) totalling $12000. No delinquencies on this account. I had a 728 Equifax score and now it's 686! I have one delinquency from over 5 years ago and that's it. From what I've read my score could be alot better if I didn't have so much of this kind of debt which is why I was expecting it to go up not down by paying this debt off.

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I am sure that someone will correct me if I am wrong, however, I do not believe that paid installment loans count in your FICO scoring.  In fact you are going to LOSE points because PAID INSTALLMENT LOANS DO NOT COUNT TOWARDS your AVERAGE ACCOUNT AGE.

[Anonymous]

I have a home equity loan which is close to it's max but it was included in the previous report when I had the 728 score. I also paid off another ATV that increased my score to the 728 about 3 weeks ago.

[Anonymous]

Both loans on the atvs were opened last July and both were paid off last December. In otherwords these loans are short in age. I would think that would increase my score, right?

[Anonymous]

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Geordi wrote:

I am sure that someone will correct me if I am wrong, however, I do not believe that paid installment loans count in your FICO scoring.  In fact you are going to LOSE points because PAID INSTALLMENT LOANS DO NOT COUNT TOWARDS your AVERAGE ACCOUNT AGE.

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Yes, they count. All TL count in your age.

[Anonymous]

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tdaman wrote:
I have a home equity loan which is close to it's max but it was included in the previous report when I had the 728 score. I also paid off another ATV that increased my score to the 728 about 3 weeks ago.

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Is it a LOC? Is it above $50k?

Besides the home equity, do you have any open installment accounts?