topic Re: Paid Off Loan in Understanding FICO® Scoring

Paid Off Loan

CivalV — Sun, 03 Feb 2019 21:23:02 GMT

Last week I made a payment to my Fingerhut account and now the balance is $0. I have 10 revolving accounts this includes Fingerhut. I received a MYFICO alert stating my Fingerhut account updated on EX and my score dropped 3 points. Its the only account that is at a $0 balance. Is this normal? Fingerhut is showing as an installment loan on my CRS. Will my score come back up if I let the $0 balance report next month? Super confusing smh

Re: Paid Off Loan

Anonymous — Sun, 03 Feb 2019 23:33:12 GMT

Is Fingerhut the only installment loan you have? If yes, the it's normal (in fact, I'm surprised you didn't get more of a drop). FICO likes you to have a mix of credit and rewards you for having an installment loan in addition to your revolving credit.

However... I've never had a Fingerhut account, but it seems to me I've read that after you make your first purchase with them and then finish paying the loan off in installments, it converts to revolving credit. If that's true, then making another purchase using that account might not give you back those points. But I don't know that for certain.

Re: Paid Off Loan

CivalV — Mon, 04 Feb 2019 01:19:26 GMT

Thanks for the reply. I also have a self lender account that is 40% paid off. It’ll be paid off by June. I wonder if Fingerhut will graduate that account to an actual revolving account.

Re: Paid Off Loan

Anonymous — Tue, 05 Feb 2019 04:46:32 GMT

I don't have the answer to your question but I wanted to share my experience with fingerhut.
I.paid off my fingerhut fresh start account in Dec, a few days ago they reported the fresh start as closed and opened a new revolving credit line which did cause a dip in my scores.