auto loan pif, score dropped?

[mgs2010]

My score dropped by over 20 points when my loan was paid off. I was never late, but the loan was only open for 2 months...why did this happen and how do I bounce back up?

[llecs]

You are comparing scores pulled both times from myFICO, right?

The drop could be a number of factors. If the scores are FICO scores, adding a new account could have initially dropped your score due to the added account, the inquiry if applicable, and a possible drop in your AAoA. Also paid, closed installment accounts, like your auto loan, stop being a part of your mix of credit. If you lack any other installment accounts (SLs, car, mortgage, etc.), then you could have seen a drop from that. ETA...depends on when you pulled the reports for comparison.

Message Edited by llecs on 02-08-2010 05:47 PM