My TransUnion Score Tanked 18 Points After Paying Off My Car Loan. Is This Normal???

[WaterOverFire]

Per Credit Karma, my credit score dropped 18 points after I paid off my car loan. Is this normal???? I would think owing less money would improve my credit!! I've been desperately doing everything I can to improve my score month after month and this just put me back at square one so it's very disheartening. At first, I thought it may be something else negative that contributed to the score dropping so much but that was the only change reported. There were even 3 hard inquiries that were dropped.

This really is disheartening because I've done everything I can to improve my score which is already low (went from 560 to 542). I have been doing everything I can to slowly improve it and now it's taken a huge hit

[notfancy]

Not necessarily. CK is very wonky and tends to send me updates that my score or credit report has done strange things. It also has me in the high 700s as a credit score, but my true FICOs are in my signature. I would use CK to see what is new, old, newly reporting, but ignore the score. It isn't accurate.

[fishbjc]

Credit Karma is a FAKO.  And remember, loans are factored differently./

[Scupra]

My CK score is a little over 40pts lower than my FICO from myFICO.

[WaterOverFire]

I've read somewhere through search that even the scores obtained through MyFICO scores are FAKO scores and the true scores can only be obtained directly from the CB's themselves - Is that true?
I also have a subscription to MyFICO score watch and the score they gave me were pretty close to the CK scores until the big drop in CK. MyFICO now reads 33 points higher. I was fearing MyFICO will also soon reflect the major drop but from what I've noticed, CK was always a little behind in updates compared to MyFICO.

[anca21bi]

Credit Karma always seems to be 30-40 points less than myfico. This also seems true for others as well.

[Anonymous]

The same thing happened to me, but only by 5 points. I paid off a car loan and it dropped. I'm still waiting to see what will happen on my next update Friday. My scores are way different.. CreditKarma says 583 and Myfico says 566, but two months ago when I got my credit pulled for a new truck, all my scores were in the low 600s. I'm just using these sites for the forums and to keep track that everything is being deleted that I pay. =)

[lg8302ch]

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@anca21bi wrote:
Credit Karma always seems to be 30-40 points less than myfico. This also seems true for others as well.

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not for me...CK is only 5 points difference from my TU Fico ... ...CK scores are for entertainment only but use it for monitoring of TU and it is a great free service

[c4sp14nx]

"I've read somewhere through search that even the scores obtained through MyFICO scores are FAKO scores and the true scores can only be obtained directly from the CB's themselves - Is that true?"

I've actually kept track of this for my own scores (comparing this and other sites against "real" pulls), and MyFico is generally spot-on as regards the Equifax score. During the past year-and-a-half that I've got records on, my Equifax here has never been more than 5 points different from my "real" score -- and is usually right on the money. I've found, however, that the Experian and TransUnion scores obtained through this site are typically WAY off though -- for instance, my "real" TU score is actually 24 points higher than what is reporting here at MyFICO.

That said, the scores obtained here are usually much closer to reality than those at CreditKarma, CreditSesame, or Quizzle -- I find those scores to routinely be 30-40 points off.

[Scupra]

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@c4sp14nx wrote:

"I've read somewhere through search that even the scores obtained through MyFICO scores are FAKO scores and the true scores can only be obtained directly from the CB's themselves - Is that true?"

I've actually kept track of this for my own scores (comparing this and other sites against "real" pulls), and MyFico is generally spot-on as regards the Equifax score. During the past year-and-a-half that I've got records on, my Equifax here has never been more than 5 points different from my "real" score -- and is usually right on the money. I've found, however, that the Experian and TransUnion scores obtained through this site are typically WAY off though -- for instance, my "real" TU score is actually 24 points higher than what is reporting here at MyFICO.

That said, the scores obtained here are usually much closer to reality than those at CreditKarma, CreditSesame, or Quizzle -- I find those scores to routinely be 30-40 points off.

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What do you mean your "real" TU score? The score from myFICO is a FICO score. There are many different models that lenders use. If you apply for credit somewhere and it doesn't match your myFICO score it's just because they are using a different model. By no means is the TU score obtained here not real.