topic Re: Auto loans paid... FICO Score dropped :( in Understanding FICO® Scoring

Auto loans paid... FICO Score dropped :(

Anonymous — Sat, 31 Oct 2015 16:42:27 GMT

Hello, just needed some opinions here. So, my 3 car loans have been paid off and I see my score dropped . Is this normal to see our FICO score drop after a car loan is paid off? Before the update on my Equifax, I also Disputed these car loans that they're all paid off to Equifax coz it took about 2 + months after they're updated on my Equifax CR that they're already paid off. I wonder if my Dispute has something to do with my score dropped . Thanks.

Re: Auto loans paid... FICO Score dropped :(

Anonymous — Sat, 31 Oct 2015 17:37:43 GMT

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/PAID-OFF-AUTO-SCORE-DROPS/m-p/4206763#M98587

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Can-a-dispute-cause-my-EQ-FICO-to-drop-19-points/m-p/4227143#M99113

Re: Auto loans paid... FICO Score dropped :(

NRB525 — Sat, 31 Oct 2015 17:55:32 GMT

Sorry to hear, but yes, every week there are numerous posts here with the same situation. Scroll through the first couple of pages of headlines in this same forum, you'll se several.

Thus the call to the Mods to put a sticky thread "Paid off my car loan and my score dropped" just to make it more obvious

Re: Auto loans paid... FICO Score dropped :(

Anonymous — Sat, 31 Oct 2015 19:13:54 GMT

Thank you for the info

Re: Auto loans paid... FICO Score dropped :(

Anonymous — Sat, 31 Oct 2015 19:21:26 GMT

Took my hit today on my paid off car loan. Lost 9 points on EX.

Re: Auto loans paid... FICO Score dropped :(

Anonymous — Sat, 31 Oct 2015 20:04:03 GMT

Mine took 6 points down

Re: Auto loans paid... FICO Score dropped :(

9CLINE — Sat, 31 Oct 2015 23:45:42 GMT

Yeap....join the club.............

Re: Auto loans paid... FICO Score dropped :(

CreditMagic7 — Tue, 03 Nov 2015 06:55:27 GMT

It's been suggested (and good advice depending) that ahead of any installment payoffs like an auto loan or other installment to take out a shared secured loan with a Credit Union such as Alliant for one as an example, that way once your long/short term installment aka auto loan reached maturity your FICO punishment due to MIX OF CREDIT loss can be greatly minimized and avoid those drastic score crashes that everyday people come in here wondering what the heck is going on and Why Did My Score Drop After Paying Off My Loan scenario.