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Established Member
Posts: 63
Registered: ‎11-25-2012
0

Pay of loan and FICO drops 10 points?

I paid of the rest of my 2,000 loan that I had about 950 left to pay and my FICO drops 10 points... Why? I will be in the garden for at least the next 1 1/2 to 2 years........... My Fico is 597 now. No late payments. Just high UTI.

app free since 11/24/12 In Garden Until December 31st 2013
Walmart Discover 3,000 : Meijer 600 : Local Bank Card 500 : Capital One Platinum 500 : Best Buy Reward Zone 400 : Chase Slate 200
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Senior Contributor
Posts: 30,749
Registered: ‎02-07-2013
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Re: Pay of loan and FICO drops 10 points?


blackdust wrote:

I paid of the rest of my 2,000 loan that I had about 950 left to pay and my FICO drops 10 points... Why? I will be in the garden for at least the next 1 1/2 to 2 years........... My Fico is 597 now. No late payments. Just high UTI.


The results will probably update along with scores next month to CR but now that it shows paid UTL will weigh very heavily on scores 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Established Member
Posts: 63
Registered: ‎11-25-2012
0

Re: Pay of loan and FICO drops 10 points?

okay. So my score will stay crapy until I pay down my cards? All my cards are maxed out and I have student loans that hit every four months. i plan on paying of cards after I finish paying of my mobile home. I only have 8k left to pay on the home. So I will have it paid of by spring 2014.

 

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to bad mobile home loan is not in my name. Smiley Sad

app free since 11/24/12 In Garden Until December 31st 2013
Walmart Discover 3,000 : Meijer 600 : Local Bank Card 500 : Capital One Platinum 500 : Best Buy Reward Zone 400 : Chase Slate 200
Community Leader
Senior Contributor
Posts: 30,749
Registered: ‎02-07-2013
0

Re: Pay of loan and FICO drops 10 points?


blackdust wrote:

okay. So my score will stay crapy until I pay down my cards? All my cards are maxed out and I have student loans that hit every four months. i plan on paying of cards after I finish paying of my mobile home. I only have 8k left to pay on the home. So I will have it paid of by spring 2014.

 

----

to bad mobile home loan is not in my name. Smiley Sad


Major factor of score drops 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Established Member
Posts: 63
Registered: ‎11-25-2012
0

Re: Pay of loan and FICO drops 10 points?

lol. My cards have been maxed out for over a year.

app free since 11/24/12 In Garden Until December 31st 2013
Walmart Discover 3,000 : Meijer 600 : Local Bank Card 500 : Capital One Platinum 500 : Best Buy Reward Zone 400 : Chase Slate 200
Community Leader
Senior Contributor
Posts: 30,749
Registered: ‎02-07-2013
0

Re: Pay of loan and FICO drops 10 points?


blackdust wrote:

lol. My cards have been maxed out for over a year.


I am only assuming 

If you were planning to pay off mobile home early I would focus more on the cards right now bringing down the balances if thats an option.

Either way the longer you have cards max out the longer scores will suffer 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Community Leader
Senior Contributor
Posts: 30,749
Registered: ‎02-07-2013
0

Re: Pay of loan and FICO drops 10 points?

Something else I would like to add having cards max out for extended periods can result in what's known as balance chasing by banks and then closer after paid.

Not that this could happen to you but I felt you needed all the info YMMV

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Established Member
Posts: 63
Registered: ‎11-25-2012
0

Re: Pay of loan and FICO drops 10 points?

Good to know about the longer their maxed out the longer my scores will be bad. I have to pay of the mobile home first b/c the loan is not under my name. My family helped me get the home for my family. Thank god too b/c since having the mobile home my bills have droped by 300 a month. all my debt will be gone within 2 years except my student loans. But I will not have to pay on my student loans for at least 4 for more years. I have to get at least a masters degree. When my student loans hit I will be able to pay off fast also b/c I will just live in our trailer for a couple years/ then after the student loans are gone I will save a down payment to buy my house out in the country.  My bills are less than 500 a month for lot fee, electric, utilities, and internet/cable.

app free since 11/24/12 In Garden Until December 31st 2013
Walmart Discover 3,000 : Meijer 600 : Local Bank Card 500 : Capital One Platinum 500 : Best Buy Reward Zone 400 : Chase Slate 200
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Established Member
Posts: 63
Registered: ‎11-25-2012
0

Re: Pay of loan and FICO drops 10 points?

cards being closed after payed would be bad. Do they do this even with no late payments? Ever?

app free since 11/24/12 In Garden Until December 31st 2013
Walmart Discover 3,000 : Meijer 600 : Local Bank Card 500 : Capital One Platinum 500 : Best Buy Reward Zone 400 : Chase Slate 200

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