Car paid off = Closed account/lowered score

[Anonymous]

I paid off my car loan 6/16/20, my bank reported it as a closed account, nothing about the car being paid off, is this accurate? My score even went down! Anything I can do? 

[SouthJamaica]

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@Anonymous wrote:

I paid off my car loan 6/16/20, my bank reported it as a closed account, nothing about the car being paid off, is this accurate? My score even went down! Anything I can do? 

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I'm sure the reports shows that it's been paid.

[Rogue46]

Yes that sounds accurate. Your score went down because of the loan being closed out. You get a score bump from having an active loan 

[KLEXH25]

Yes, a closed auto loan will result in lost points if you have no other installment loans open, unfortunately. Where are you seeing the information? On Credit Karma, my closed Auto Loan looks like this, which shows it's paid (you have to click on the account):

[Anonymous]

No you get a bonus for having an open loan underneath certain B/L thresholds. When you close the account you lose the bonus!

Yes you can take out another loan and pay it down to almost paid off, then you’ll be back in the position you were and get your points back. That’s why we have the famous SSLT.

[M_Smart007]

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@Anonymous wrote:

I paid off my car loan 6/16/20, my bank reported it as a closed account, nothing about the car being paid off, is this accurate? My score even went down! Anything I can do? 

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Hi @Anonymous and welcome to the forums! ,

Sorry you lost points. You lost them due to no longer having an open installment loan in which you get bonus points for having.

The only thing you can do is get a SSL or find a lender that you can get a personal loan, and pay it below <8.9%

Just be careful, as some lenders don't always push the next payment out for 5 years. (or the term of the loan.)

[Trudy]

Congrats on paying off your loan!  No longer a part of your debt load   That's worth something even if it's not points!

[Anonymous]

I agree, and those points should recover over time. It's only an issue if you had planned to app something fairly soon, and the score loss was significant enough to raise your APR. 

[Anonymous]

No those points will not recover over time they will not recover unless they are activated by a loan at 9% or less B/L. however as with everyone scores, if there’s nothing there to suppress your scores, over time it goes up due to the average ages, etc..., but those will not be loan points that are received.

[Iusedtolurk]

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@Anonymous wrote:

I paid off my car loan 6/16/20, my bank reported it as a closed account, nothing about the car being paid off, is this accurate? My score even went down! Anything I can do? 

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That's one of the crazy things about credit scores if you don't have an active installment loan you miss out on the extra points it gives you. Pay it off and you get hit with a loss in points.