REFI=BIG HIT!

[Anonymous]

I had 6 student loans that went to Navient after my BK discharged and I started paying on them. I decided to refinance and cut my payment nearly in half! Thats great but when Navient was paid off by the new lender, I took nearly a 20 point hit on all scores!

Will my scores bounce back after the new loans hits my report? I was just about to make the 700 club by 5 points when this hit!

SOOO frusterating!

[SCF]

Were these your only installment loans?  Were there any other changes on your report since your last score?  Where did you get your score from (FICO or FAKO)?  All of these will help explain why and your score changed.  Getting a new loan will generally drop your score a few points at first, but over time, that "new account ding" will fade and your positive payment history will help build up your score.

[Anonymous]

No..not my only installment loans. I have 4 others..all in good standing along with 2 CC's. My scores are from here (Myfico). I have no other changes to my report other than these being "paid".

My new loan did not report yet. I consolidated 6 loans into 2. Just dont understand the huge hit.

[reneasworld]

From lurking on the boards, you usually will see a ding when you close or pay off an installment account. If it was a rather large amount that may attribute to the 20 point decrease since the new installment has not posted yet. It probably will not go back up the full 20 points due to AAoA but you should get some points back and the rest will come after a couple of months of payments.

[Anonymous]

I hope so! That hit is really bugging me! I was just about to refi my car loan but now will have to wait for scores to bounce back.

[Anonymous]

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@Anonymous wrote:

I had 6 student loans that went to Navient after my BK discharged and I started paying on them. I decided to refinance and cut my payment nearly in half! Thats great but when Navient was paid off by the new lender, I took nearly a 20 point hit on all scores!

Will my scores bounce back after the new loans hits my report? I was just about to make the 700 club by 5 points when this hit!

SOOO frusterating!

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Unfortunately paying off debt 100% is not a good thing. The same thing happened to me, but eventually your score will rebound. At first, not the full 20 points, but eventually. I will be facing a similar situation at the end of next year, but I'm willing to take the hit in order to get rid of the debt. Good luck!!!

[Anonymous]

I have two more loans are going to be paid off soon, a mortgage and a revolving.I'm kind of worried how it's going to impact my score.guess I'll just wait and see.