score dropped about 40 points

[Anonymous]

paid off my entire truck loan and refinanced at a better rate.

old loan is showing paid in full and paid as agreed

new loan is showing new ballance and paying as agreed

why the drop? i have a installment loan?

AAOA is 5 months. still very thin file.

[Anonymous]

bump

[Revelate]

It's likely due to something in how FICO 8 calculates scores thin files.

If you were at a 780 before with that little history all bets are off in terms of rational analysis currently as we just don't have many data points.

I'd be curious as to what the rest of your report is, and whether that new installment loan reported fully or if it's still in a half-reported state like some new tradelines show up in which might toss off the scoring analysis.

[Anonymous]

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@Revelate wrote:

It's likely due to something in how FICO 8 calculates scores thin files.

If you were at a 780 before with that little history all bets are off in terms of rational analysis currently as we just don't have many data points.

I'd be curious as to what the rest of your report is, and whether that new installment loan reported fully or if it's still in a half-reported state like some new tradelines show up in which might toss off the scoring analysis.

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sorry not a 780 before i havnt updated my scores in my signature.

[Anonymous]

A drop in AAoA plus a new credit line plus a likely inquiry. Not much to explain here especially with the low AAoA. Many rational factors here affecting the drop. I wouldn't sweat it. Give it 3-6 months the points will be gained back.

[Anonymous]

I just refinance my car loan to a better rate, I will get a ding on my score too. I wont be surprise about this.

[Barneygirl]

Welcome to the wonderful world of FICO scoring

Same thing happened to me.  Paid off the Jeep... boom, 40 points gone!!!  

It was my oldest "installment" loan, and only one of three accounts at that point.  So it was much more damaging with a thin file.  I about choked and fell on the floor in convulsions! lol   I was prepping for a mortgage and my mortgage broker told me to pay off the jeep!!!!!!   I hadn't found this forum yet, nor did I realize what was about to happen by doing it.

Give the new loan a few months and you'll start to see your score increase.... generally over the first 6 months.

Sorry... that's a hard one to swallow.... I know all too well