Self Lender caused initial score drop

[Billharrell]

Hi all, I opened my self lender account ($550) in January, and was told it would report my the end of March. This morning it reported on EX. It does show as a 12-month installment loan from "CNB" and shows original loan amount and amount remaining ($406).

Unfortunately for me, the new account dropped my aaoa from 3.1 years to 2.7 years. My EX score dropped from 692 to 686. I was hoping to be able to report an increase, and I'm sure in time it will be a credit boost, but not until my aaoa gets back over the 3yr mark. Just a warning to heed if anyone is desperate for an immediate score boost. Other factors come into play. Good luck!

[Billharrell]

An Update...

Though my EX fico dropped my FAKO scores at both credit karma and credit seseme all went up between 20-30 points.

[Anonymous]

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@Billharrellwrote:
An Update...

Though my EX fico dropped my FAKO scores at both credit karma and credit seseme all went up between 20-30 points.

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Ignore Credit Karma's scores, they don't matter. Fico scores do matter.

[Anonymous]

OP, is this your only open installment loan?  If so, did you get it with the intention of raising your FICO scores?

If so, paying it down to $48 (less than 8.9% utilization) will give you a score boost, likely to the tune of 25-30 points.  I know nothing about self lender loans, but if you can pay it down to $48 and it pushes your payment due date way out as a result, definitely go for it.  Crossing the 8.9% threshold is what matters when it comes to installment loans and trying to get a nice score gain.

[Anonymous]

Unfortunately, paying more than your monthly dues on your Self Lender loan wouldn't push your payment due date out. It would simply shorten the length of your loan.