Trading in a car

[MissKay]

I traded in my car in July. My score was 610 and went down to 585. Ive been told it is because the new car costs more than the car I traded in. My question is, on my CR it shows Santander Consumer account closed 7/11. Closed account paid . 0 past due/balance. Is this negatively affecting my score at all? Thanks for your response.

[Anonymous]

It's probably more from the new loan if you got one for the new car.

[guydiver]

The paid(non-revolving) loan will usually not affect your Fico much, if at all.  The new loan could lower your score slightly, depending upon your credit mix.  However, your auto enhanced Fico should definitely go up in your favor.  Any negative effect of the new loan should decline quickly. 

[RobertEG]

The biggest effect is most likely the addition of a new trade line with zero age, lowering your average age of accounts.

FICO also, under new credit, considers a very new account, somewhere in the range of 6 months to a year, as a ding, but that is short-lived.

Additionally, the inquiry involved with the new account will score for a year.

[boomhower]

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@RobertEG wrote:

The biggest effect is most likely the addition of a new trade line with zero age, lowering your average age of accounts.

FICO also, under new credit, considers a very new account, somewhere in the range of 6 months to a year, as a ding, but that is short-lived.

Additionally, the inquiry involved with the new account will score for a year.

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This.  Your score will rebound quickly but that is a large hit for a new account.  Is your file thin?