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Auto Loan - Score Decrease

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Anonymous
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Auto Loan - Score Decrease

Hi All, 

 

I'm really hoping someone can help me to understand what in the world is going on. For some reason, every time I pay my auto loan and it posts to my credit, my score DECREASES. In July, it caused a 16 point decrease! I'm paying on time every month and most months paying more than the billed amount. 

 

In June, I had a mortgage on a home that I have since sold. Due to the mortgage being closed and my address change, that had a pretty hefty hit on my scores. Now, I can't figure out what is going on because of the auto loan. My scores were constantly going up and ever since this, they've done nothing but go down. 

 

I'm in the process of building a home and they said if the construction gets moved out any more, they will have to rerun my credit report. I'm a little stressed (to say the least) that this auto loan keeps DECREASING my score when it may have to get pulled again. 

 

Any guidance or help anyone can provide to help me understand the what and why behind this is so appreciated!

 

 

Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: Auto Loan - Score Decrease


@Anonymous wrote:

Hi All, 

 

I'm really hoping someone can help me to understand what in the world is going on. For some reason, every time I pay my auto loan and it posts to my credit, my score DECREASES. In July, it caused a 16 point decrease! I'm paying on time every month and most months paying more than the billed amount. 

 

In June, I had a mortgage on a home that I have since sold. Due to the mortgage being closed and my address change, that had a pretty hefty hit on my scores. Now, I can't figure out what is going on because of the auto loan. My scores were constantly going up and ever since this, they've done nothing but go down. 

 

I'm in the process of building a home and they said if the construction gets moved out any more, they will have to rerun my credit report. I'm a little stressed (to say the least) that this auto loan keeps DECREASING my score when it may have to get pulled again. 

 

Any guidance or help anyone can provide to help me understand the what and why behind this is so appreciated!

 

 


A full picture of your credit profile might help.

Message 2 of 5
Anonymous
Not applicable

Re: Auto Loan - Score Decrease

Ouch. That's a little discouraging. I'm sorry to hear that your auto loan is having that effect on your scores. This morning I checked my myFico and my Experian score dropped 5 points from my auto loan being paid on time this month. Maybe it will take a couple more months of on time reporting or to get into a lower threshold of debt? 

Message 3 of 5
Anonymous
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Re: Auto Loan - Score Decrease


@Anonymous wrote:

Ouch. That's a little discouraging. I'm sorry to hear that your auto loan is having that effect on your scores. This morning I checked my myFico and my Experian score dropped 5 points from my auto loan being paid on time this month. Maybe it will take a couple more months of on time reporting or to get into a lower threshold of debt? 


I really doubt the auto loan is a direct cause. Its just correlating with something else.

Message 4 of 5
Anonymous
Not applicable

Re: Auto Loan - Score Decrease

Hi NormanFH, 

 

Hopefully I can give you a pretty good idea. If I missed anything that would help, please let me know. 

 

I have 1 credit card that I let post 10% on each month. I charge and pay to it so that 10% of my balance is reported each time. I've noticed that when I let it fall below the 10%, my score drops, so I leave it at the 10% each month. This was opened in 2005.

 

I had one mortgage on my account (paid on time every month) that was closed in June. This dropped my score by 9 points. When the address change posted to my credit, this dropped my score 13 points. 

 

I have one auto loan (the one that keeps telling me it is dropping my score) that I pay on time every month - usually $5-$100 more than the billed amount. This was opened in February. The drops began happening in May with each payment made. 

 

I have a prior auto loan that closed in January that had been paid on time each month. 

 

I had a couple of small (less than $50) collections on my report dated back to April which have all been since either removed or paid in full. All of those bumped my score up once they reported. 

 

My scores were 680, 686, and 677. They are now 630, 648, and 636. 

Message 5 of 5
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