No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
@Anonymous wrote:
I paid down student loans by $65,000. I still owe 200k, but my score dropped 24 pts across all 3 bureaus....nothing else in my report changed
....
Any ideas??
If you paid one loan off to zero, that took it out of the open-installment-loan-utilization-percentage equation which is a big scoring factor in FICO 8.
We would have to know what his open installment loans are in terms of current/original balances to really give an answer here. I wouldn't think a utilization change would account for a drop that great. Generally only paying off all open installment loans results in such a drop. OP if you can get back to us listing what your open installment loans were prior to the $65k paydown (balance / original balance) and after the paydown we can dig a little deeper on this.
So you paid down the student loan balance from $260k to $200k? That means the loan is still open then?
Based on that information, there is no way that making that payment should have dropped your scores.
@Anonymous wrote:
Sure...
I have 3 installment loans
Honda. 19,000/22,000
Honda. 13,000/22,600
Student loans. 260,000/200,000-->200,00/200,00
You need to break the student loans down into separate loans rather than lump them together as though they are one.
Once you pay a loan down to zero, it's original balance is taken out of the denominator for computing the open installment loan utilization percentage.
@Anonymous wrote:
*should not cause decrease
You wrote 260k/200k; were the loans deferred or in some other state, or did you mean 200/260k?
@Anonymous wrote:
Sure...
I have 3 installment loans
Honda. 19,000/22,000
Honda. 13,000/22,600
Student loans. 260,000/200,000-->200,00/200,00
So your student loan is for 200,000 and you had a 260,000 balance, and now you paid 60,000 on it and now is 200,000/200,000?
Maybe your student loan was not included in your score, and now it is?