I understand the logic behind having an open installment loan, and the <9% rule for increase while having a paid off loan will net you a penalty. What i do not understand is how I just had a point decrease from paying off one of two loans. Data Points:
2 installment (car) loans - each almost exactly the same amount - 20k ish
5 revolvers in the form of credit cards. AZEO util around 30%
I paid off one loan, are figured i just decreased my debt by 20k, so i was expecting a small bump but instead was rewarded with a decrease.
feels bad 
The remaining loan util % is all by itself now. And the 30% CC util can go below 28% and that will help also. Below 6% even better.
@rosco75 wrote:I understand the logic behind having an open installment loan, and the <9% rule for increase while having a paid off loan will net you a penalty. What i do not understand is how I just had a point decrease from paying off one of two loans. Data Points:
2 installment (car) loans - each almost exactly the same amount - 20k ish
5 revolvers in the form of credit cards. AZEO util around 30%
I paid off one loan, are figured i just decreased my debt by 20k, so i was expecting a small bump but instead was rewarded with a decrease.
feels bad
Need to know the original loan amounts on both loans, the balance on the paid off loan just before you paid it off, and the balance on the remaining loan.
@FireMedic1 wrote:The remaining loan util % is all by itself now. And the 30% CC util can go below 28% and that will help also. Below 6% even better.
Installment loan util was always there though. Since there were two, wouldnt it be better by itself? Im not sure I understand your meaning. Forgive me if I need it barney style, I am just a Marine afterall 
@SouthJamaica wrote:
@rosco75 wrote:I understand the logic behind having an open installment loan, and the <9% rule for increase while having a paid off loan will net you a penalty. What i do not understand is how I just had a point decrease from paying off one of two loans. Data Points:
2 installment (car) loans - each almost exactly the same amount - 20k ish
5 revolvers in the form of credit cards. AZEO util around 30%
I paid off one loan, are figured i just decreased my debt by 20k, so i was expecting a small bump but instead was rewarded with a decrease.
feels bad
Need to know the original loan amounts on both loans, the balance on the paid off loan just before you paid it off, and the balance on the remaining loan.
Car#1 Age 8 months
Original Loan Amount$21,594
Remaining Balance$19,865
Car#2 Age 1yr 4 months
Original Loan Amount$22,458
I paid off Car#2 decreasing my debt by $18,278. Since the account is still reporting, just paid, the age would not affect it?
@rosco75 wrote:
@SouthJamaica wrote:
@rosco75 wrote:I understand the logic behind having an open installment loan, and the <9% rule for increase while having a paid off loan will net you a penalty. What i do not understand is how I just had a point decrease from paying off one of two loans. Data Points:
2 installment (car) loans - each almost exactly the same amount - 20k ish
5 revolvers in the form of credit cards. AZEO util around 30%
I paid off one loan, are figured i just decreased my debt by 20k, so i was expecting a small bump but instead was rewarded with a decrease.
feels bad
Need to know the original loan amounts on both loans, the balance on the paid off loan just before you paid it off, and the balance on the remaining loan.
Car#1 Age 8 monthsOriginal Loan Amount$21,594Remaining Balance$19,865Car#2 Age 1yr 4 monthsRemaining Balance$18,278Original Loan Amount$22,458I paid off Car#2 decreasing my debt by $18,278. Since the account is still reporting, just paid, the age would not affect it?
Thanks. Well I can't see any reason why paying off #2 would have caused a score decrease. Your installment utilization did not change much. Your number of accounts with balance decreased by one. I'm guessing it was something unrelated.
Maybe going from a little less than 90% installment utilization (86.5%) to a little more than 90% installment utilization (92%) caused a score decrease? I guess it's possible, but I doubt it.
@SouthJamaica wrote:
@rosco75 wrote:
@SouthJamaica wrote:
@rosco75 wrote:I understand the logic behind having an open installment loan, and the <9% rule for increase while having a paid off loan will net you a penalty. What i do not understand is how I just had a point decrease from paying off one of two loans. Data Points:
2 installment (car) loans - each almost exactly the same amount - 20k ish
5 revolvers in the form of credit cards. AZEO util around 30%
I paid off one loan, are figured i just decreased my debt by 20k, so i was expecting a small bump but instead was rewarded with a decrease.
feels bad
Need to know the original loan amounts on both loans, the balance on the paid off loan just before you paid it off, and the balance on the remaining loan.
Car#1 Age 8 monthsOriginal Loan Amount$21,594Remaining Balance$19,865Car#2 Age 1yr 4 monthsRemaining Balance$18,278Original Loan Amount$22,458I paid off Car#2 decreasing my debt by $18,278. Since the account is still reporting, just paid, the age would not affect it?Thanks. Well I can't see any reason why paying off #2 would have caused a score decrease. Your installment utilization did not change much. Your number of accounts with balance decreased by one. I'm guessing it was something unrelated.
Maybe going from a little less than 90% installment utilization (86.5%) to a little more than 90% installment utilization (92%) caused a score decrease? I guess it's possible, but I doubt it.
isn't 89% one of the smaller installment loan thresholds for small point boosts? This would account for it if they went back above 89%.
Not sure that the drop specifically relates to the loan payoff. Your balance to loan ratio is looked at in aggregate for active loans. In your case not much change. BTW - analysis from a few years back suggests a minor score change B/L threshold somewhere in the 65% to 70% range.
Nonetheless, there is one rather obscure scoring factor that one credit bureau uses as a minor component: Age of open installment loans. I believe the factor looks at age of oldest open loan moreso than average age of the loans. Code 25 encompasses all loans (open + closed) whereas code 36 in the lower table is for open loans only.
I have seen a variety of these lists and only Experian looks at age of open loans.
@SouthJamaica wrote:
@rosco75 wrote:
@SouthJamaica wrote:
@rosco75 wrote:I understand the logic behind having an open installment loan, and the <9% rule for increase while having a paid off loan will net you a penalty. What i do not understand is how I just had a point decrease from paying off one of two loans. Data Points:
2 installment (car) loans - each almost exactly the same amount - 20k ish
5 revolvers in the form of credit cards. AZEO util around 30%
I paid off one loan, are figured i just decreased my debt by 20k, so i was expecting a small bump but instead was rewarded with a decrease.
feels bad
Need to know the original loan amounts on both loans, the balance on the paid off loan just before you paid it off, and the balance on the remaining loan.
Car#1 Age 8 monthsOriginal Loan Amount$21,594Remaining Balance$19,865Car#2 Age 1yr 4 monthsRemaining Balance$18,278Original Loan Amount$22,458I paid off Car#2 decreasing my debt by $18,278. Since the account is still reporting, just paid, the age would not affect it?Thanks. Well I can't see any reason why paying off #2 would have caused a score decrease. Your installment utilization did not change much. Your number of accounts with balance decreased by one. I'm guessing it was something unrelated.
Maybe going from a little less than 90% installment utilization (86.5%) to a little more than 90% installment utilization (92%) caused a score decrease? I guess it's possible, but I doubt it.
Pretty sure there is a scoring threshold somewhere in the high 80's I want to say 88%
I seem to recall a 7 point or so change on my report around that number on my report.
@rosco75 wrote:I understand the logic behind having an open installment loan, and the <9% rule for increase while having a paid off loan will net you a penalty. What i do not understand is how I just had a point decrease from paying off one of two loans. Data Points:
2 installment (car) loans - each almost exactly the same amount - 20k ish
5 revolvers in the form of credit cards. AZEO util around 30%
I paid off one loan, are figured i just decreased my debt by 20k, so i was expecting a small bump but instead was rewarded with a decrease.
feels bad
There is no penalty on paying off a loan it is strictly loan balance utilization changes when going from a very high utilization like you had it is possible for your score to rise, your change resulted in a 7% or so utilization increase and that or an unrelated reason is why your score decreased