I got notifications today that My Experian (41 points) and Equifax (20 points) scores had dropped. The most notable change is that my DCU refinanced auto loan is now reporting on both of them. My old auto loan has not yet reported as having been paid off. I am thinking that the drops in my score might be related since it now appears that I have two active auto loans for $13900? Would it seem logical that when my original auto loan shows as paid that my score will rebound?
My Experian is also now reporting the $3000 DCU credit card ($0 balance) and the $4500 Chase Freedom ($575 balance) that I opened recently. The only reason why the Chase had any kind of a balance is because the first statement ran two weeks after I had applied. I was not expecting the statement to run so soon after the approval. My Equifax report only shows the DCU card with the zero balance along with the re-fi. The inquiries for all of this activity had already hit my report so I do not think it would have been related to them.
I am already in garden mode and will have time to let those scores bounce back but I am curious if having the two auto loans showing as active would explain the drop.
Don't get me wrong, I would rather have the $130 a month I saved from the re-fi but that was a huge punch in the gut this morning. The Chase card did not show up on my Equifax yet so that might explain why it was only a 20 point drop versus the 41 on Experian.
As Appleman said, I think it's more related to the new loan. Like you said, as you garden for a little, you'll get the bounce back!
What does your report show as far as Total % Utilization. My reports show my CC util and my loan util and a total. If your report shows both loans it might be the reason for the drops.
How did your 2 new cards affect your AAoA? My file is so thin it really makes a difference.
@Raiderguy8 wrote:I got notifications today that My Experian (41 points) and Equifax (20 points) scores had dropped. The most notable change is that my DCU refinanced auto loan is now reporting on both of them. My old auto loan has not yet reported as having been paid off. I am thinking that the drops in my score might be related since it now appears that I have two active auto loans for $13900? Would it seem logical that when my original auto loan shows as paid that my score will rebound?
My Experian is also now reporting the $3000 DCU credit card ($0 balance) and the $4500 Chase Freedom ($575 balance) that I opened recently. The only reason why the Chase had any kind of a balance is because the first statement ran two weeks after I had applied. I was not expecting the statement to run so soon after the approval. My Equifax report only shows the DCU card with the zero balance along with the re-fi. The inquiries for all of this activity had already hit my report so I do not think it would have been related to them.
I am already in garden mode and will have time to let those scores bounce back but I am curious if having the two auto loans showing as active would explain the drop.
1. Your old loan was probably helping your score because it was mostly paid down.
2. Your new loan is showing high utilization, thus hurting your score.
