Why did my score drop?!?

[Anonymous]

I had a student loan that I have been paying on for quite some time (6 years) I finally, (after the balance got down to $200) paid it off, 6 months early, and MY CREDIT SCORE DROPPED!!! WHAT THE HECK?! Why?

[Revelate]

FICO appears to like open installment loans on one's report; it might be marginal but anecdotally that appears to be the case with more than a few folks reporting having 2 open is ideal.

Was this your only open installment line, or otherwise you only have one left possibly?

[MarineVietVet]

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@Revelate wrote:

FICO appears to like open installment loans on one's report; it might be marginal but anecdotally that appears to be the case with more than a few folks reporting having 2 open is ideal.

Was this your only open installment line, or otherwise you only have one left possibly?

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Closed accounts are still counted in the credit mix although open, active accounts are weighed a bit more heavily. 

So having open installment loans is actually not all that critical but depending on what else is reporting it might be enough of a change to cause a score drop.

[bettercreditguy1]

I wouldn"t be too concerned. My wife does not have any active installment loans. Her last  paid auto loan occured over 12 years ago. We PIF all of her accounts every month after statements are mailed to us. Her scores from My Fico are TU 810 and EQ 803. All of her Fico legends report as " GREAT". Her reports are squeaky clean and have been that way for over ten years. As her Husband, (we have been married 5 years) my responsibility is to be certain every bill of hers is paid in full. Btw, she paid cash for her last new car (before we were married). Consequently, she only has had revolving credit reporting since we have been married. My goal is to get back in the 800 Club Pool with her. Congradulations for your current and continued successes!

[Repo-ed]

To better answer your question, we would need to know what else is reporting.