Credit score dropped 80 points - no missed payments? Help!

[Anonymous]

My credit is on a roller coaster right now (considering the fact that all my scores were 699 to 705 before Sept 28th 2019). It literally dropped an average 50 points (across all scores) and one score dropped another 50 points after that (all in the last month and a half)  without any missed payments ( i assure you I checked and all my payments are automated) .

The only things that happened are:

I made the final payment on my car and  made arrangements to lower my student loan payment. I paid off my car loan of 30k last month and my student loan payments were adjusted because I was accepted for a different payment plan. I had a scheduled student loan payment for that month (Sept) I was planning to pay, but the payment disappeared and when I called fed loan serving to ask why they said I was in deferment because I was in the process of getting a new payment amount (and that no payment was due until November ).

I got an alert that the interest on my student loans went up the same day I ususally would make my car payment and it looked as if I missed a payment which I know I didn't. I know I didn’t because I called fedloan services and they said I didn’t miss any payments, i logged into my account serveral times over the last few weeks and it still show no missed payments,  and there are no missed payments in my student loan account.

I recently got another update and one of the credit reporting agencies boosted my score by 49 points while another dropped it about 30 after it was reported that my auto loan account was closed because I paid it off. I really am confused right now and this is so wrong. I worked hard to repair my credit over the last 7 years and this is totally unfair! I make all my payments on time! Please help! Is there anyone to contact to get things in order. I have no missed payments and my payment made on time is 99% based on credit karma which had it at 97% the month before. 

Here are examples - you may have to right click to open up in a new window to see them

http://s923.photobucket.com/user/412hiphop/slideshow/credit 

Thanks for any help!

[Anonymous]

Your last statement confuses me - you said according to CK you’ve been 97-99% on time but have no missed payments. It should reflect 100% if that’s the case, although that’s all fluff and not really relevant.

As for the scoring, are you going by the scores on CK? If so, stop. They aren’t relevant scores. Lenders use FICO scoring, and CK uses VantageScore 3.0, a different algorithm. What’s the source of your scores?

[Anonymous]

It's correct because I haven't had any missed payments in over 5 years. I had to missed payments about 6 years ago. 

Credit Karma is what I used, but I also checked experian as well and it showed a similar drop. 

[Anonymous]

I’d start with a $1 trial for seven days at www.creditchecktotal.com and pull all three reports and scores. I’m wondering if you had old accounts fall off that caused your aging factors to get significantly younger, or something along those lines...

[Anonymous]

Another possibility could be with all the movements in your loan profile, if the transition from one provider to another results in a new tradeline, you would then have an auto loan that closed, plus a student loan that closed, leaving no installments, and then the start of a new loan at 100% utilization. All of that combined would be bad luck but certainly could cause a pretty decent score drop.

[Anonymous]

I think you may have a point! My average age of credit history dropped from ten years to 6.5 when the auto loan closed on one of my credit scores. But does that equate to a drop of 50 points? that seems a little harsh.

[Anonymous]

Unfortunately from the images you posted and what you told us the decrease in your scores is accurate. They will rebound in time. Here is what happened:

Your car loan of 30K was almost paid off. Sitting at, about 90% paid. That gives you a nice score boost. Once it is paid to 100% it drops your score. I personally hate this about credit scoring (FICO does this too). A paid off loan should boost your score but the credit deciders don't agree. The other thing that happened (based on the images you posted) is your student loan balances increases. Some small, some not so small. This is a side affect of the deferments and/or changes in servicers. I can not see the original amounts but I'm guessing very little of the balances have been made because there have been a series of deferments. When your 90% paid car loan was paid to zero it is no longer factored into your loan utilization. That leaves on these high utilization loans left. Credit scoring will really hit you hard for that.

For now just keep paying on time. Your 6 year late will fall off soon and that will help. Also once you make some payments on these loans that will help too. Good luck.

*also I just went through a similar thing this month. I paid off a loan and it hit my FICO scores for about 20 points.