Score dropped by 30 Points - Why?

[Ineedaname]

I recently sold my home and paid off a ton of debt, at first my score was bumping up a little, but all of a suddent it dropped by 30 points because one of my credit card balances decreased by 56% and last week it dropped by 26 points when the mortgage company reported the loan being paid off. Ughhhh, just when things were looking up!

Does anyone know why this would happen?  

[Anonymous]

Less than opimum credit mix. FICO likes to see revolving (3-5 accounts), installment (one) and real estate (one). You no longer have the real estate loan, so FICO sees a less than optimum mix of credit types.

[Ineedaname]

Thank you for replying so quickly. 

It's so frustrating - I paid off debt to improve my credit standing.  My plan was to improve my score and buy a new house this spring - I guess that's not going to happen!  

[Anonymous]

Do you have any other installment debt? If not a simple stupid 500 dollar share secured loan with a CU will get at least some of that back. My loan with alliant is 500 bucks. 48month term, 11.02 per month. I picked up a significant boost on TU (for some reason my other loan reports strangely with them so that is my only installment with them) I want to say it was in the area of 25 points. Plus the savings account is earning .8 percent, so net cost on the 4 year term is like 22.45.

[Ineedaname]

I bought a new car in December, but it's not reporting yet - kind of strange, I would think it would have been reported by now.  Hopefully when it does, my score will go back up.  

[Anonymous]

Took almost three months before my car purchase in august began reporting.