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PAID off wells Fargo auto... EQ down 20 points WTH

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PAID off wells Fargo auto... EQ down 20 points WTH

I paid off my Wells FARGO Auto loan on 12/18/2016. it just reported to Equifax. Now my score went down 20 points. How long before my score goes back up? That just seems so contradicting to lower somewhere score because they are responsible. Any input is great. Thank you.
TU: 650 EQ: 625. EX: 629
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4 REPLIES 4
Established Contributor

Re: PAID off wells Fargo auto... EQ down 20 points WTH

Was this your only installment loan?  If it was, it's likely that you lost a few points because of the change in your credit mix. 

Message 2 of 5
Established Contributor

Re: PAID off wells Fargo auto... EQ down 20 points WTH

I lost 30 points when my car was paid off after it being declared a total lost and I'm guessing because my student loans aren't reporting yet. So as the above person stated if it was your only one that is why.






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Message 3 of 5
Valued Contributor

Re: PAID off wells Fargo auto... EQ down 20 points WTH

Its not a penalty for being responsible it is because you no longer have an installment loan.  I went for 5 years not using credit at all, I was responsible but because I wasn't using credit my scores suffered greatly.  Ultimately you have to decide how important those points are.  Having said that you will get most of them back over time but to get all of them you will likley need a installment loan reporting on a regular basis.

Message 4 of 5
Valued Contributor

Re: PAID off wells Fargo auto... EQ down 20 points WTH

Agreed with the above poster

We are PROGRAMMED to 'think' of all scoring from a POV that is DIFFERENT from what RISK scoring is....

People's thought pattern goes to GPAs or some sort of Olympic gold star atta boy/girl 'good' job YOU did something, now you're OWED a treat

1) We must understand the scoring model is NOT about YOU or even FOR 'you' ....

Truth be told it's about LENDERS

The model, was put together to numerical rate the RISK that 'this' particular profile ( yeah YOU....Name not important, other than simply identifying, whom is attached to said PROFILE) will or won't go 90 days late...
As of THIS moment
No history
Can't and don't give a flip flying eff about what you JUST paid off....It's just the DATA to me ma'am

There are no gold stars for JUST paying off ANYTHING

My JOB as a scoring model aka a computer program aka an app is to just run the numbers as programmed, PERIOD.....

You humans get too emotional, over stuff I just read the data and spit the numbers

This is a video game, when will you learn?

If the programming says you get a boost for having X amount of accounts being managed AT THE SAME time + Y amount of them being a mixture....

The moment those VIABLES "change"....Well things are different so the overall # of open being managed accounts obviously CHANGED as at least 1 account you were getting KUDOS for managing I'm conjunction with others doesn't exist as an open account anymore, so how can you EXPECT the brownie points for that when that part is OVER
Also hasn't the overall MIX of open accounts changed

Ppl keep wanting to make credit scoring like looking at your high school report card .... Where last semester means something to how YOU are scored at THIS moment but again it's NOT about or FOR you....It's all about the RISK evaluation for a vendor, in this split second, which could be different if the snapshot is 72 hours later

It is what it is folks
Message 5 of 5
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