FICO Score Dropped?

[ADARPegasus]

So i refinanced my auto loan for $44k with another bank and the new loan hasnt reported yet but the old one reported paid and closed. Why did my score go down for paying off a 44k loan??

[Anonymous]

This is normal behaviour. When an installment loan reports paid the Fico elves see this as a negative. It's stupid, but it's just the way it is.

[ADARPegasus]

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@Anonymous wrote:

This is normal behaviour. When an installment loan reports paid the Fico elves see this as a negative. It's stupid, but it's just the way it is.

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Yea that is ridiculous. But im guessing creditors look at it as a positive thing right?

[Anonymous]

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@Jonbuck06 wrote:

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@Anonymous wrote:

This is normal behaviour. When an installment loan reports paid the Fico elves see this as a negative. It's stupid, but it's just the way it is.

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Yea that is ridiculous. But im guessing creditors look at it as a positive thing right?

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Only in the case of a manual review. An automated decision doesn't evaluate in that depth.

[lg8302ch]

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@Jonbuck06 wrote:

So i refinanced my auto loan for $44k with another bank and the new loan hasnt reported yet but the old one reported paid and closed. Why did my score go down for paying off a 44k loan??

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If this was your only installment loan then the point drop was for the lack of the credit mix. Don't worry it looks you will soon have an installment loan on your report again.

[ADARPegasus]

i have 1 more. but it was my largest loan on there!

[lg8302ch]

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@Jonbuck06 wrote:

i have 1 more. but it was my largest loan on there!

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oh.. then the loss would have been even worse if that would have been the only one I guess and then it is not for lack of the credit mix