We would need a more complete picture of your profile before and after the score loss, as well as the dates and score versions you're comparing, to help you narrow down all the causes of the drop, but if you're looking at FICO scores it would be at least partly due to paying off all of your debt. If you went from having at least one balance report on a revolving account to having no balances reporting, you would have incurred the "all-zero" penalty. Similarly, if you paid off your only installment loan, you would have taken a penalty for having no installment activity when that reported. If the loan was close to paid off before you made your final payment, you would also have lost the bonus points for having a low balance-to-loan ratio. 86 points seems like a larger loss than those by themselves would account for, but if you want to share more info with us we can help you look into it further.
@Anonymous wrote:@Slabenstein I only have a 2½ year old Capital One. 10 month old Dell, Macy's, Tinker Loan and Discover
I paid everything off.
That's it... I've applied for nothing else. Opened nothing else.
100% Clean File.
The loan was at $1,711 out of a $2,000 Starting Balance. I paid a $1,711 payment two weeks ago. Due to ending my relationship with Tinker I wanted away! Lol
I owed $16 on my Cap1 and paid it off mid-December.
How can All-Zero hit me for nearly 100 points with a clean file?!
And I was told that I still receive the Installment Bonus even if it's paid off, as long as it's still ON report... Not a true statement?
No, it's true, a closed installment loan contributes to credit mix. Installment activity and b:l are just separate metrics. Your loan with Tinker was only a little over 85% paid off before you paid it off completely, so I think the only points you would have lost there would just have been for not showing current installment activity. I don't think that plus the revolver AZ penalty would have come to more than maybe 40 points at the max, but since your profile is apparently young I suppose it's possible their effects could be exaggerated? Aging-related scorecard reassignment is another common cause of score drops when nothing else changed, but from the account open lengths you give you haven't crossed any thresholds. Can you answer the following questions for me:
-What is the particular score you're seeing the drop on (e.g. EX8), and what were your scores on that version and bureau before and after the drop? Do you see a similar drop on your other FICOs, if you have access to them?
-What was the date of the higher score, and what was the date of the lower score?
-Do you have any other closed accounts reporting?
-Have you pulled your ACRs to confirm there are no other changes reporting?
Additionally, can you confirm the following:
-Your Cap1 card was opened in July of 2018. It reported a $16 balance before mid-December, and a $0 balance after mid-December.
-Your Dell, Macy's and Discover revolvers were all opened in March of 2020. They all reported a $0 balance at the time of your higher score, and all report a $0 balance now.
-Your Tinker PL was also opened in March of 2020. It reported a balance of $1,711 prior to two weeks ago, and it reports as a closed loan with no balance now.
@Anonymous wrote:@Slabenstein July 29th 2018 is exact opening date for Cap1.
Yes, Cap1 reported at $16 last month, until I updated Today. Disco, Macy's, and Dell were all opened March 10th - 20th of 2020 and have all been at $0 for at least 3 months.
Score was 730 late December. Like December 20th-ish. Then I pulled an update Today and it's 641.
They are TransUnion on Credit Karma.
I only use Credit Karma. Never used ACR...
Equifax hasn't reported the loan as closed OR paid off, yet. But it did report the $0 Cap1 and it went UP 7 points... So clearly the loan paying off and closing is causing a HUGE 86-93 point DROP (93 if the $0 Cap1 would have INcreased +7 as it did on Eq...)
No other closed accounts.
Ah. Credit Karma uses VantageScore 3.0 credit scores, which aren't FICOs. I don't really know much about Vantage metrics, so unfortunately I can't do much to help you understand this score change. Some people believe that Vantage does not count closed accounts for scoring (tho I don't know that I'm one of them), so if that's the case the closed loan could be the source of the drop. To my observation, VS3 doesn't have any kind of an all-zero penalty, so zeroing out the Cap1 probably actually had a positive effect on it. The good news is that VS3 is basically not used in lending decisions (almost all lenders use some version of FICO), so the drop you saw doesn't really mean anything.
FYI, Discover provides free monthly TU FICO8's w/ their cards, so whenever you get your Jan update (will depend on when your statement date is) you should be able to pull up a chart that tracks your score changes on that version and see what occurred there. You may not find much to worry about.
@Anonymous wrote:@Slabenstein THANK YOU! My Disco cuts the 9th or 10th. So is that when I'll get a new Fico update, too?
SIDE NOTE: THIS coming cut (the 9th of January) is when I come up for my Disco GRADUATION, too!!! Omg I hope I didn't screw myself by this loan pay off!!! ðŸ˜ðŸ˜ðŸ˜
If your statement closes on the 9th, I would expect your updated TU8 to be available on maybe the 8th. The score will be dated Jan 3, b/c that's when Disco pulled it, but it won't be visible until then. Disco can be pretty inscrutable about things like graduation and CLI, but I doubt that paying off the PL would have materially affected your graduation chances. I'd bet they're primarily concened with how well you've managed your credit with them and the other credit they can see on your reports. From what you've said here, you've paid on time and kept util low, so I don't think they'll see anything to hold against you.