How much will my score drop

[eyarman128]

Hello,

So not sure if anyone can answer this but looking for a ballpark number if possible. My wife was recently in a car accident and totaled my car. The insurance will be paying off my loan in full and I was wondering if anyone could tell me a ballpark number of how much my credit score will fall. If it make a differnce this is the only installment loan on my report.  

Current scores:

EX 781

T 787

EQ 785

[EAT_SLEEP_JEEP]

I would imagine its somewhat file specific but the couple times we have done that ( paid off vehicle loans) it was always a minimal drop 5 points or so if that or no change. Last time was march last year we sold our 2 Jeeps to carmax  ending the loans on both and we didn't pick up new loans and it actually made our score creep up a few points?

[simplynoir]

This will depend on how far along in paying it off you got before the accident. If the auto loan was still fairly new then it could be you could see minimal change to your scores if any really. The impact from the reporting loan when it first shows up is the biggie and from there you gain minimal scoring til the loan reaches the magical 8.9% or less territory, because at that point you actually maximize your scoring model with reporting loans. Anything beyond that and I dont expect much to change with your scores

[SouthJamaica]

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@eyarman128 wrote:

Hello,

So not sure if anyone can answer this but looking for a ballpark number if possible. My wife was recently in a car accident and totaled my car. The insurance will be paying off my loan in full and I was wondering if anyone could tell me a ballpark number of how much my credit score will fall. If it make a differnce this is the only installment loan on my report.  

Current scores:

EX 781

T 787

EQ 785

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If it was paid down to less than 10% you might lose in the neighborhood of 25-30 points in FICO 8.

If it wasn't paid down that far, you'll probably lose less. Gaining a little by having one less account with balance, losing a little by having no open loans. If there is a point loss in your FICO 8's and 9's, there will probably be less effect on your mortgage scores.

[FireMedic1]

I'm just going to add. Dont stop making payments until the entire loan is paid/settled. Too many come on here who stop paying thinking its totalled no need to pay anymore and then have lates show up on their reports. Your still the owner until its $0 balance.