Score goes DOWN after paying off mtg??

[Anonymous]

Just refinanced so previous lender is paid off-- my FICO score went down 20 points!  New lender isn't listed yet, but I'm not understanding the point decrease... any explanation appreciated.

[jamie123]

Was that your only open installment loan? When you close the last open installment loan that is on your reports your score will usually fall. FICO wants you to have an open installment loan on your reports and gives you points for it.

You should regain most of the points once your new mortgage reports and ages for a few months.

[Anonymous]

Thanks for your reply-- yes, I think that was my only open-installment plan credit cards don't count, right?

[Anonymous]

Nope, CCs don't count as installment loans. 

[Anonymous]

get like a DCU secured loan for 500 or something based of a saving account you create there.

Its like next to nothing in interest and payments.

That would open an installment loan.

[Anonymous]

Thanks-

[Anonymous]

Thank you...