Auto loan paid off Credit score dropped at experian

[max2mum]

Can someone explain to me why I paid off my auto loan and experian dropped my score. Should this not be the reverse?

[Dalmus]

---

@max2mum wrote:

Can someone explain to me why I paid off my auto loan and experian dropped my score. Should this not be the reverse?

---

Can we assume that this was your only installment loan?

This is an expected result.  A mixture of open account types is needed for optimum scoring.  It shows that you are responsible with multiple types of credit.

[Anonymous]

It takes into account the AAoA . So that line is closed so it goes off your average of active trade lines.

[Hex]

Your AAoA didn’t change but when the car loan became a closed paid account your installment loan utilization went up. An almost paid off installment loan gives you bonus points. If it’s your only installment loan and you close it you also lose points for less “credit mix”. Installment utilization looks at the total installment amounts originally borrowed (for all open installment accounts) verses what you’ve already paid (but only on open accounts). If doesn't make sense but that’s how FICO scores it. The paid off loan will still look good on a manual review and might help you get a new loan.