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Auto loans paid... FICO Score dropped :(

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Anonymous
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Auto loans paid... FICO Score dropped :(

Hello, just needed some opinions here. So, my 3 car loans have been paid off and I see my score dropped Smiley Sad. Is this normal to see our FICO score drop after a car loan is paid off? Before the update on my Equifax, I also Disputed these car loans that they're all paid off to Equifax coz it took about 2 + months after they're updated on my Equifax CR that they're already paid off. I wonder if my Dispute has something to do with my score dropped Smiley Sad. Thanks.

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Anonymous
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NRB525
Super Contributor

Re: Auto loans paid... FICO Score dropped :(

Sorry to hear, but yes, every week there are numerous posts here with the same situation. Scroll through the first couple of pages of headlines in this same forum, you'll se several.

 

Thus the call to the Mods to put a sticky thread "Paid off my car loan and my score dropped" just to make it more obvious Smiley Happy

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 3 of 8
Anonymous
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Re: Auto loans paid... FICO Score dropped :(

Thank you for the info Smiley Happy

Message 4 of 8
Anonymous
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Re: Auto loans paid... FICO Score dropped :(

Took my hit today on my paid off car loan.  Lost 9 points on EX.

Message 5 of 8
Anonymous
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Re: Auto loans paid... FICO Score dropped :(

Mine took 6 points down Smiley Sad

Message 6 of 8
9CLINE
Valued Contributor

Re: Auto loans paid... FICO Score dropped :(

Yeap....join the club.............

Message 7 of 8
CreditMagic7
Mega Contributor

Re: Auto loans paid... FICO Score dropped :(

It's been suggested (and good advice depending) that ahead of any installment payoffs like an auto loan or other installment to take out a shared secured loan with a Credit Union such as Alliant for one as an example, that way once your long/short term installment aka auto loan reached maturity your FICO punishment due to MIX OF CREDIT loss can be greatly minimized and avoid those drastic score crashes that everyday people come in here wondering what the heck is going on and Why Did My Score Drop After Paying Off My Loan scenario.

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