topic Re: Score decrease after payoff in Understanding FICO® Scoring

Score decrease after payoff

Anonymous — Sat, 09 Jun 2007 08:59:51 GMT

I recently paid off my automobile, just two months earlier than determined. This caused my score to decrease by points, nothing major, but not good since I was hoping that less debt was best. This was not the case. As I pay off debt, I am not seeing the increase I thought I should. Of my cc debt, I am only using 21% of what is available from open accounts. My oldest account is 27 y/o, 1-2 delinquencies from 2002.

Is this just a short term response, or could the effect be longer? How can I increase this score?

Re: Score decrease after payoff

Tuscani — Sat, 09 Jun 2007 17:03:20 GMT

Auto loans have little effect in terms of util. Getting that 21% under 10% will help you the most. Can we get more info on your delinqs?

Re: Score decrease after payoff

Anonymous — Sat, 09 Jun 2007 17:05:19 GMT

@Anonymous wrote:
I recently paid off my automobile, just two months earlier than determined. This caused my score to decrease by points, nothing major, but not good since I was hoping that less debt was best. This was not the case. As I pay off debt, I am not seeing the increase I thought I should. Of my cc debt, I am only using 21% of what is available from open accounts. My oldest account is 27 y/o, 1-2 delinquencies from 2002.
Is this just a short term response, or could the effect be longer? How can I increase this score?

Probably a short term loss. Get your UTL under 10%!!!!

Re: Score decrease after payoff

Anonymous — Tue, 12 Jun 2007 06:09:27 GMT

Both delinquencies were only 30 days, never more. I say 1-2, as delq are listed differently on the two reports I have, EQ and TU. One was a small retail acct that had been reactivated. Since was not a normal acct for me, I missed the first payment. Once I realized it, I paid the acct off in 3 months. I cannot remember the specifics of the other acct, but the report indicates the I was delq in Jan '05, but the date of the last paymt was 10/04. This has to be disputable, yes???

Re: Score decrease after payoff

Tuscani — Tue, 12 Jun 2007 13:13:58 GMT

charisma2 wrote:

Both delinquencies were only 30 days, never more. I say 1-2, as delq are listed differently on the two reports I have, EQ and TU. One was a small retail acct that had been reactivated. Since was not a normal acct for me, I missed the first payment. Once I realized it, I paid the acct off in 3 months. I cannot remember the specifics of the other acct, but the report indicates the I was delq in Jan '05, but the date of the last paymt was 10/04. This has to be disputable, yes???

YES!