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11 point drop due to new auto loan

Super Contributor

11 point drop due to new auto loan

I checked my TU and it dropped 11 points as my new auto loan posted to CR. Fico says most of the fico users paydown 35% of the loan balance. I am going to pay down the loan by 40% and see if my score goes back up again.  I really did not needed this loan, I added it so I can have an installment loan shows on my CR. Let us see what happens to score next month once I pay off 40% of the loan balance.
Message 1 of 4
3 REPLIES
Moderator Emeritus

Re: 11 point drop due to new auto loan

Maybe it affected your average account age.
Message 2 of 4
Super Contributor

Re: 11 point drop due to new auto loan

I think installment loan does not affect the age. In the fico report said loan to balance on installment loan is high, high fico scorers keep the balance lessthan 35% or some thing. I'll pay it down by 40% and let us see what happens to the scores when the next statment is cut.
Message 3 of 4
Moderator Emeritus

Re: 11 point drop due to new auto loan

Concord, I am pretty sure that installment, as well as, revolving affect avg. age.
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Message 4 of 4