Paid and Closed CC, score dropped

[Anonymous]

Hey everyone - I closed my Credit One card last month, and it reported a $2 balance due to interest or something like that.  No score change last month.  This month it reported closed and $0 as I paid the interest from the last time I had a balance.  My score dropped 10 points from this, and as you can see below the remarks said "paid loan".

This should not have happened, correct?  Why on earth would I lose 10 points for paying off revolving debt?

[thornback]

When you closed the account, bringing the credit limit to $0, how much did that drop your total amount of available credit? Closing a card reduces your total available credit limit - affecting utilization. Did your util increase with the closing? Also closing can affect the number of accounts showing a balance. For example, if prior to closing, you had 1 out of 3 showing a balance, you would now have 1 out of 2 - possibly dinging you for 'too many accounts with balances' Can you tell us about your other accounts?

[Anonymous]

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@thornback wrote:
When you closed the account, bringing the credit limit to $0, how much did that drop your total amount of available credit? Closing a card reduces your total available credit limit - affecting utilization. Did your util increase with the closing? Also closing can affect the number of accounts showing a balance. For example, if prior to closing, you had 1 out of 3 showing a balance, you would now have 1 out of 2 - possibly dinging you for 'too many accounts with balances' Can you tell us about your other accounts?

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Sorry, I've been around here long enough to know to include data points lol.

My current reported utilization is 3% (354/12500)

Revolving accounts with balances - 1/5

All open accounts w/ balances - 4/8 (1 card reporting balance, mortgage, auto loan, personal loan)

Let me know if you need anything else - AAoA from my credit reports is like 2 years or so.

[thornback]

Yea, with those stats, a 10pt. score drop due to closing seems quite odd.

I'm assuming you already triple checked to make sure nothing else, unrelated, changed prior that may have caused the drop in score; meaning the report of a closed account simply triggered the alert / score update reflecting a decrease that resulted from some other alertable event?

Is it just one bureau that updated so far?

[Anonymous]

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@thornback wrote:
Yea, with those stats, a 10pt. score drop due to closing seems quite odd.

I'm assuming you already triple checked to make sure nothing else, unrelated, changed prior that may have caused the drop in score; meaning the report of a closed account simply triggered the alert / score update reflecting a decrease that resulted from some other alertable event?

Is it just one bureau that updated so far?

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Yea I find it odd as well, if anything I expected to maybe gain a point or two.  I have checked my Experian report and do not see any other credit alerts.  No new inquiries (although I have a ton lol), no missed payments, etc.

So far I have only seen this change on Experian.  Do you think it's weird that there is a comment on the alert that says "paid loan"?  Maybe Experian is reporting the account type incorrect?

[thornback]

That's possible, but you have other loans so... It's not like you went down to zero open loans - so I don't see that being the cause either.

[Anonymous]

Disregard the part about the account type.  Checked my report and it's showing Revolving.  So that must be a MyFICO deal.

I'm baffled, I guess I will wait to see what happens to TU and EQ.

[thornback]

Yea, sorry, I'm baffled too. Maybe someone else will come along with knowledge.. Lol. Report back when the other bureaus update - will be interesting to see if similar score changes occur.

[xaximus]

OP - if you can - when was that TL opened? SL/CL on the card? Can you list out your other cards with SL/CL, when opened, etc.

[Anonymous]

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@xaximus wrote:
OP - if you can - when was that TL opened? SL/CL on the card? Can you list out your other cards with SL/CL, when opened, etc.

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Closed Credit One Card - Opened 11/2017, SL 300, CL 700

Blue Nile Card - Opened 6/2018, SL 1000, CL 4200

Kohl's Card - Opened 5/2018, SL 300, CL 700

Wayfair Card - Opened 9/2018, SL I think 250?, CL 3700

Capital One - Opened 9/2018, SL 300, CL 800 (combined another CapOne Card)

Military Star - Opened 10/2018 , SL/CL 2950

So my Credit One card was the oldest of these cards, but that shouldn't matter as it will be counted for 10 years correct?