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I've just recieved a notice that there was a change to my FICO score.. logged in to review it and I about fainted. -14 points on EQ. FOURTEEN points?! (Hubby lost 17 points on his EQ)
According to the alert I lost points for A) Balance decrease (paid down from $293 to $75) and B) Account information change. Refinanced our home and the original creditor has reported it as closed, paid as agreed with a zero balance and the new mortgage hasn't yet reported.
I'm sick over this - literally. Is there any hope that once the new mortgage is reported that we will see a rebound? I'm at 701 now, from a high of 722 at the beginning of the month.
If that's your only installment loan, then very reasonable, probably on the lucky side actually. But should restore somewhat with the new mortgage.
Other people have reported similar FICO08 score decreases when their only open installment loan changes to closed. Pretty sure that you'll see a rebound when the new mortgage appears.
@pizzadude wrote:
Other people have reported similar FICO08 score decreases when their only open installment loan changes to closed. Pretty sure that you'll see a rebound when the new mortgage appears.
+2
Thanks... I guess we'll see what happens in a month or so when the new one reports.. *fingers crossed* that it goes up.
@JoMellow wrote:Thanks... I guess we'll see what happens in a month or so when the new one reports.. *fingers crossed* that it goes up.
You will certainly see a score rebound. But please be patient. It will probably take more than a month or two. Your score took a small hit due to closing of your only installment loan (which is totally unfair). When the new loan reports, you will gain most of those points back. However, your AAoA will probably be hurt. It can lower your score in the short term. In the long term, your score will probably be higher due to two positive mortgages on your CR. But it is little solace in the short term.
@CreditDunce wrote:
@JoMellow wrote:Thanks... I guess we'll see what happens in a month or so when the new one reports.. *fingers crossed* that it goes up.
You will certainly see a score rebound. But please be patient. It will probably take more than a month or two. Your score took a small hit due to closing of your only installment loan (which is totally unfair). When the new loan reports, you will gain most of those points back. However, your AAoA will probably be hurt. It can lower your score in the short term. In the long term, your score will probably be higher due to two positive mortgages on your CR. But it is little solace in the short term.
I'm over the initial shock, I knew there would be a shift downward with closing of our only installment loan. Luckily I have plenty of time to ride it out (no new app's planned until 2015). I'll grab an Amex for the 1992 member since date, which should help offset the new TL. Plus, I'm stoked that we were able to go from a 20 year payoff down to 9.
I'm geared up to try and hit 750's by end of 2015.. and hopefully 800's in 2016. thanks for your insight
Congradulations on paying off your mortgage so quickly. That is huge. It will free up cash to help you with your other goals. Your score will rebound before you know it.
Well i never saw a rebound. lost about 25 points in june after i paid off personal loan from credit union. did not open another. as it is positive tradeline. however. it is not helping my score now. and it says here. no open installment. loans. apparently. the installment must be open at all times. i will not open installment just because fico likes that. to hell with it. then
@CreditDunce wrote:Congradulations on paying off your mortgage so quickly. That is huge. It will free up cash to help you with your other goals. Your score will rebound before you know it.
I'm going to try and just not get to wadded up over scores for the next few months; micromanaging - microworrying is pointless for now. Thanks so much for your encouragement.