Auto loan discharged.. score dropped

[Anonymous]

Hi guys. I filed chapter 7 and was discharged in late March. Today my FICO notified me of score changes. My scores have been going up since my discharge so I was expecting more good news. Much to my surprise, my scores dropped 48 points! My auto loan status changed to reflect my bankruptcy. Can anyone help me understand how my scores are dropping 40+ points? Thanks

[Anonymous]

Was the auto loan your only installment loan?

[Anonymous]

It was the only installment loan left on my credit after the bankruptcy, yes.

Could that be the reason? So now I don't have anything reporting to my credit so it went down?

[Anonymous]

I think so. 

Do a shared secured loan or self lender loan . . you can find lots of info on them on these forums.

Pay it way down right away (good for utilization and saving on interest) and then you'll just make small payments on it for the term of the loan.

It'll satisfy your installment mix of credit for scoring purposes and you should get a nice bump without spending unnecessary $ on another car note.

[tricie17]

Congrats on the discharge!!  Your report needs to be well rounded and because you no longer show an installment, reason for drop.