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Paid and Closed CC, score dropped

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Regular Contributor

Paid and Closed CC, score dropped

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?

 

paid Credit One.PNG


Starting 5/2018

Current 3/2019
13 REPLIES 13
Valued Contributor

Re: Paid and Closed CC, score dropped

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?
Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/06/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2019: EX 761 ✦ EQ 734 ✦ TU 757
Current FICO 9s | 11/2019: EX 768 ✦ EQ 775 ✦ TU 766
Highest FICO-8 Ever | 10/2018: 780 [on dirty report]

2019 Goal Score | 760s


My AAOA: 2.9 years not incl. AU / 3.0 years incl. AU
My AoOA: 6.9 years not incl. AU / 8.9 years incl. AU
Inquiries: EX 0/6 | 4/12 ✦ EQ 0/6 | 5/12 ✦ TU 0/6 | 1/12
Report Status: Clean

Tending my Garden til 6/2020


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 2 of 14
Regular Contributor

Re: Paid and Closed CC, score dropped


@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?

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.


Starting 5/2018

Current 3/2019
Message 3 of 14
Valued Contributor

Re: Paid and Closed CC, score dropped

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?
Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/06/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2019: EX 761 ✦ EQ 734 ✦ TU 757
Current FICO 9s | 11/2019: EX 768 ✦ EQ 775 ✦ TU 766
Highest FICO-8 Ever | 10/2018: 780 [on dirty report]

2019 Goal Score | 760s


My AAOA: 2.9 years not incl. AU / 3.0 years incl. AU
My AoOA: 6.9 years not incl. AU / 8.9 years incl. AU
Inquiries: EX 0/6 | 4/12 ✦ EQ 0/6 | 5/12 ✦ TU 0/6 | 1/12
Report Status: Clean

Tending my Garden til 6/2020


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 4 of 14
Regular Contributor

Re: Paid and Closed CC, score dropped


@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?

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?


Starting 5/2018

Current 3/2019
Message 5 of 14
Valued Contributor

Re: Paid and Closed CC, score dropped

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.
Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/06/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2019: EX 761 ✦ EQ 734 ✦ TU 757
Current FICO 9s | 11/2019: EX 768 ✦ EQ 775 ✦ TU 766
Highest FICO-8 Ever | 10/2018: 780 [on dirty report]

2019 Goal Score | 760s


My AAOA: 2.9 years not incl. AU / 3.0 years incl. AU
My AoOA: 6.9 years not incl. AU / 8.9 years incl. AU
Inquiries: EX 0/6 | 4/12 ✦ EQ 0/6 | 5/12 ✦ TU 0/6 | 1/12
Report Status: Clean

Tending my Garden til 6/2020


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 6 of 14
Regular Contributor

Re: Paid and Closed CC, score dropped

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.


Starting 5/2018

Current 3/2019
Message 7 of 14
Valued Contributor

Re: Paid and Closed CC, score dropped

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.
Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/06/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2019: EX 761 ✦ EQ 734 ✦ TU 757
Current FICO 9s | 11/2019: EX 768 ✦ EQ 775 ✦ TU 766
Highest FICO-8 Ever | 10/2018: 780 [on dirty report]

2019 Goal Score | 760s


My AAOA: 2.9 years not incl. AU / 3.0 years incl. AU
My AoOA: 6.9 years not incl. AU / 8.9 years incl. AU
Inquiries: EX 0/6 | 4/12 ✦ EQ 0/6 | 5/12 ✦ TU 0/6 | 1/12
Report Status: Clean

Tending my Garden til 6/2020


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 8 of 14
Valued Contributor

Re: Paid and Closed CC, score dropped

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.


Scores - All bureaus 750 +/-
TCL - Est. $275K
Message 9 of 14
Regular Contributor

Re: Paid and Closed CC, score dropped


@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.

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?


Starting 5/2018

Current 3/2019
Message 10 of 14
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