Interesting phenomena that I have observed

[Anonymous]

Up until a month ago I had all 3 credit scores (FICO 8 as reported on this site) over 800.  My scores had been at that level for about a year. During that time I got very few emails soliciting me to borrow. Last month I paid off my mortgage and my installment loan leaving me with 6 credit cards and a cumulative Util of 1% or less and an AAoA of 2 years. My FICO scores took a 25-30 point hit on all CRA's, dropping 2 of my scores below 800 (but still in the 790's). Since I paid off my loans, I have literally been bombarded with solicitations to go back into debt. Here is my actual count for the past 25 days:

Need a mortgage? 3-5 a day

Need an Installment Loan?  4-8 a day

Need some overpriced loan from a site that is probably a scam? 3-5 a day

How about a Credit Card? 2-6 a day.

These counts are EVERY DAY. What gives? Is there something that lenders can see in a soft pull that says "This guy doesn't owe anyone anything, do smething about that"? I don't even know if it a soft pull that is triggering all this.

[Anonymous]

Congrats paying off your mortgage.  We are a few years away from that club.  

They are out to pull you back in.  

[Anonymous]

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@Anonymous wrote:

Congrats paying off your mortgage.  We are a few years away from that club.  

They are out to pull you back in.  

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I figured that out - but with 3 scores in the 800's I was poison to them. Even Goldman Sachs declined me, but now that 2 of my scores are back in the 700's I am getting solicitations from them. Makes no sense at all.

[Anonymous]

I've seen an uptick in loan offers lately and I figured it was due to Covid. Onemain sends me something every couple of days and random heloc companies seem to have me on their radar too. 

[Gmood1]

This has been the norm for me over the last couple of years. And I still have an active mortgage unfortunately.😆

I received way more before this Covid stuff. BT offers out the wazoo!!

Sometimes 3 a day along with loan offers.

[FieryDance]

Is there a reason your scores dropped by 25 to 30?  Does it have anything to do with paying off mortgage?  I would imagine mortagage and loans account are still being reported.  

And, big congratulations on paying off your mortgage and loan!  

[Trudy]

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@FieryDance wrote:

Is there a reason your scores dropped by 25 to 30?  Does it have anything to do with paying off mortgage?  I would imagine mortagage and loans account are still being reported.  

And, big congratulations on paying off your mortgage and loan!  

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The OP can speak to their specifics, but sounds like no more installment accounts.  This is typical when you only have revolvers.  You lose the "extra" points for credit mix....  revolvers and installments.  Can be more substantial if the installment loans are low or below 9% as this is where you get optimal points for having installment accounts.

[Anonymous]

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@FieryDance wrote:

Is there a reason your scores dropped by 25 to 30?  Does it have anything to do with paying off mortgage?  I would imagine mortagage and loans account are still being reported.  

And, big congratulations on paying off your mortgage and loan!  

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Yes - I paid off all my installment debt. In fact, I paid off all debt including credit cards, so now my credit cards only have balances that reflect no more than a week's usage since I pay them off every Sunday.

[Rogue46]

I saw exactly the same thing after paying off a car loan and another hit for paying off the mortgage. They like to see at least one installment loan. Once my new car loan kicked in the scores went back up

[Anonymous]

it's interesting that you bring this up because my experienc is similar, whenever I dip below 750 the offers slow down or stop. Yet whenever I hit 760-780 they return with a vengance. Now that I'm just around 800 they are starting to dry up again, or perhaps it's more due to covid. Who knows.

My thinking is that offering credit to someone above 850 requires a much lower APR, which would lose them Money. So their prime range is in mid to high 700's?

I've had two PL's with marcus in the last 3 years, one paid and one payment left on the second. And they still don't want to budge from 9%!