24 point drop on EX after new car loan reported

[Red1Blue]

There is a 24 point drop on my EX after the new car loan appeared. I am planning on paying it off by 60% and see if I gain any scores.

[Anonymous]

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concorduser wrote:

There is a 24 point drop on my EX after the new car loan appeared. I am planning on paying it off by 60% and see if I gain any scores.

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Didn't you just do something like this a few months ago?

I thought for sure I read a post about 6 months ago where you got a new installment loan and were going to see what happened if you paid off 60% of it right away.

[marty56]

Same thing happend to me earlier this month with EX (-17 points).  TU and EQ had no change.  Yet.

[Anonymous]

The score drop is short lived. Most likely get around 10 points back after 60 days. There is the newer than 60 day thing I always got hit with.

[Red1Blue]

Yes, I paid off my last installment loan and got new loan to keep the mix. Last loan when I paid off 60% my scores got good boost. I am going to do it again for this loan and my scores should bounce back when the next statement cuts and balance updates. By the way I lost only 11 points on TU. Still waiting to post it on EQ then I'll pull EQ also and see what effect it might have on EQ scores.

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cheddar wrote:

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concorduser wrote:

There is a 24 point drop on my EX after the new car loan appeared. I am planning on paying it off by 60% and see if I gain any scores.

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Didn't you just do something like this a few months ago?

I thought for sure I read a post about 6 months ago where you got a new installment loan and were going to see what happened if you paid off 60% of it right away.

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[marty56]

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concorduser wrote:

By the way I lost only 11 points on TU. Still waiting to post it on EQ then I'll pull EQ also and see what effect it might have on EQ scores.

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I did not see a change on my TU, EQ scores as a result of paying of the old loan and getting a new one.  I would really like to know why not just for myself but for others as well.

Did you have any other new accounts this year?  I had a new Visa which I got back in November and my only other installment account is my mortgage which is 5 years old.  I also assume I am in the major derog score bucket with a 120 day lates on my CR.

[haulingthescoreup]

I know I got a brisk wet towel snap from EX when my car loan hit, but there was so much else going on at the time that I couldn't really separate out the damage and the recovery time. But my EX score went from 752 down to 675, and is now back to 723, in just six months with 8 new accounts, so it couldn't have been too bad.

I'm thinking that for anyone who wants installment loan credit on their reports, the solution is to get a signature loan from a credit union with simple interest, pay off 90% of it immediately, and then send in $5 a month for the next three years. At least I think that it's simple interest where you can do this.

[Red1Blue]

I think their complaint is amount of outstanding balance on the installment loan. I am going to bring it down by 35-45% before the next statement balance posts. I am sure my scores should go up substantially. Let us see what happens once the next statement balance posts.

[Red1Blue]

No score drop on EQ when the new car loan appeared.

Interesting. TU and EX did not like and there is score drop on them.

[smallfry]

Brisk wet towel snap. For the record I got no luv from EQ or EX when I paid my car loan down from 25K to 4K. TU liked it. Score pop from 717-731 month over month. EQ and EX yawned.