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Posts: 32,865
Registered: ‎08-04-2007
Re: Why does a small purchase send my score down 20+ points????

sollid wrote:

Okay, so here is another mystery to me.  As I mentioned above, my car loan has been paid off for awhile.  I am also the co-signor for my wife's car loan.  It has 9 months left on it, and I am really trying to pump up my credit score for an upcoming construction-to-permanent loan that I am going to seek.  So, I pay off my wife's car loan about a week or so ago, and I get a score alert that the account has been paid off in full.  BUT, no uptick in my credit score?  What gives with that?  My thought process was that if I eliminated a debt altogether, then it should increase my score.  What am I missing?  Also, from my previous posts, I was given the advice that my score would go back up when the balance on this little credit card goes down.  I have had it paid off for over 2 weeks now and it still stays put.  Why?  Any other tips for raising my score?

Installment utilization is a teeny tiny part of FICO scoring. You really don't gain points by paying off loans. Conversely, you aren't going to lose a lot of points when adding a car or mortgage (new account ding and impact to AAoA aside). There's always a chance for a very small gain once you pay off a loan, but that's because you're adding another zero balance which can help if you are carrying balances on most accounts.


CCs typically only report once per month and will report the balance you had on your statement date and will report that up to a few days following that statement date. Are you sure your Equifax report already updated the new statement balance?