@resetandrebuild wrote:Hi everyone!
I recently refinanced my Honda auto loan with Capital One, and today I received an alert on my credit report that a new account was opened (Capital One Auto) and my score decreased by -60 points!! I've been working really hard on rebuilding my poor credit history and my credit score was previously 620 but now i'm back to 560 (ugh!).
Will this take a while to build back up or is it a temporary ding?
Welcome to the forum @resetandrebuild
Is the score change you see an actual FICO score or was it a Vantage score offered by the free monitoring sites?
It is normal to see a score drop after refinancing an auto loan. The more you've paid on the loan you are refinancing, the larger the drop.
If the auto loan is your only installment loan, credit scores consider the difference between original amount and current amount due. The new loan shows 100% utilization, and changes the age of newest account and average age of Accounts (AAoA).
As you make payment on your new account your score will improve.
A 60 point drop seems steep for FICO scores. If it is a fico score you are referring to, I'd suggest checking your file for other changes.
Yes what @chiefone4u said you went from say 40% paid off for example and 60% owed to 100% owed and took a ding and Vantage likely is magnifying it. Also depends how thick your credit and profile is on how much of a hit one will take to FICO scores. I was at 840 before buying a new house here recently. Bought a new house 100% utilization, traded a car in that was 50% paid off and bought a new car with a loan another 100% utilization and opened up 4 CC's along with inquiries from this so alot of activity and went from 840 - > 780ish.. Huge hit due to two new installment loans at 100% currently and inquires and 4 new accounts. Points will come back monthly and likely will be back around 840's again in a year. Finances > Fico 
@resetandrebuild wrote:@chiefone4u Thanks for clarifying! This was actually a vantage score offering by the Amex credit monitoring service.
Should also mention that I currently have student loans opened as my additional installment account. I'm also in the process of paying off 1 collection and 3 charge-offs, that caused serious dings to my credit report.
Vantage scores are known to have erratic swings in scoring.
Your scores will recover. I suggest checking your FICO scores to see what they are actually doing occasionally (everyone has their own opinion as to how often). Experian offers a free monitoring and FICO8 score for Experian. Their are several places you can pay for monitoring and FICO scores. I use MyFICO when I need to micromanage my credit for an up coming purchase.
Wells Fargo offers FICO9 to their customers. Other lenders provide different scores as well.
Good luck with your collections and rebuild. This forum is full of useful help.