Why is my Credit Score dropping

[Anonymous]

I recently paid of an installment loan and my FICO score dropped by almost 15 points.  I was told when I took the loan out that there was no penalty for paying it off early, which I did by a couple of years.  I was just wondering if anyone had any experience with this type of situation.

Thank you in advance

[takeshi74]

That's typical for paying off an installment.

The no prepayment penalty is with respect to your creditor -- i.e. your creditor will not penalize you for prepaying.  It is not relevant to your scores.

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@Anonymous wrote:

I was just wondering if anyone had any experience with this type of situation.

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Many have.

https://www.google.com/search?q=paid+off+installment+score+dropped+site%3Aficoforums.myfico.com&oq=paid+off+installment+score+dropped+site%3Aficoforums.myfico.com&aqs=chrome..69i57.384j0j7&sourceid=chrome&es_sm=93&ie=UTF-8

Both of these threads have recent activity and are on the first page of threads as of this post:

http://ficoforums.myfico.com/t5/General-Credit-Topics/Loan-paid-off-score-drop/m-p/4064899#M210196

http://ficoforums.myfico.com/t5/General-Credit-Topics/Pay-off-student-loans/td-p/4041435

[Anonymous]

That's very typical!

im sure it will recover over time.