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Self Lender caused initial score drop

Billharrell
Regular Contributor

Self Lender caused initial score drop

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!

2/18 FICO 8's:
EX(692): 3.1yrs, 8 inq.
TU(654): 0.3yrs, 3 inq.
EQ(683): 3.1yrs, 3 inq.
Utilization: 50%

Wall of Shame (recent denials/wish list):

Message 1 of 5
4 REPLIES 4
Billharrell
Regular Contributor

Re: Self Lender caused initial score drop

An Update...

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

2/18 FICO 8's:
EX(692): 3.1yrs, 8 inq.
TU(654): 0.3yrs, 3 inq.
EQ(683): 3.1yrs, 3 inq.
Utilization: 50%

Wall of Shame (recent denials/wish list):

Message 2 of 5
Treasurecredit
Established Contributor

Re: Self Lender caused initial score drop


@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.

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

Message 3 of 5
Anonymous
Not applicable

Re: Self Lender caused initial score drop

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.

Message 4 of 5
M100
Contributor

Re: Self Lender caused initial score drop

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. 

Message 5 of 5
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