Credit drop after paying reposition

[Anonymous]

I recently paid off a car repossession I had back in 11/1/2013 in notes it said "Unpaid balance reported as a loss " there was also a closed date of 8/31/14. Once I paid the unpaid balance of 6900, My credit score went down 16 points, WHY?

[Anonymous]

Was the account coded as an installment loan?  Do you have any other open installment loans?  I'm not familiar at all with repo's, but if it was seen as an open installment loan that's now closed and you don't have any other open installment loans that would be the reason for the score drop.

It's also completely possible that your score dropped for a different reason all together and the timing of your payoff is simply leading you to believe that the drop was due to the payoff.

[Anonymous]

I agree with BrutalBS above -- I bet it coded as an installment loan with a balance and now you likely have no installment loans reporting.

Do the Alliant SSL Technique -- costs you $40-$50 once done, and you'll get a nice FICO boost if you don't have any other installment loans reporting otherwise.

[Anonymous]

I look and can't find if it said open installment. Only notes is Unpaid balance reported as a loss by credit grantor, but I do have another car loan that i'm paying so wouldn't that eliminate that therory?

[Anonymous]

Yep that would indeed eliminate that theory.

I wonder if they updated or changed the tradeline to a different tradeline and reaged it.

[Anonymous]

that could be it, it wasn't under collections not under accounts, if that makes a diffrence. But to be clear you saying it basicaly started over because of activity, cause it has been about 4 years.

[Anonymous]

You'd have to pull a credit report that shows your actual date of last activity and compare it to older reports.  Credit Karma used to allow this but I believe they deleted older reports.