Annoying 10 Point Drop

[Anonymous]

It doesn't matter much since I am freezing any hard credit inquiries for at least a year for when I apply for a mortgage...but over 30 days ago I got a new car lease and with that a hard inquiry, of course. on 1/8 I get the new inquiry, then on 1/14 my new account with the lease shows up. Score never took a negative hit. I was suprised. Reason being, I had a $14k loan...I thought I would get dinged for having a new car lease loan, and a $14k loan. Since then, my available credit has increased due to some nice automative increases and my credit card utilization has been at like 1% for quite sometime. So, I paid off my $14k loan. I JUST get an alert that says my all my personal finance balances DROPPED by 14k due to paying the loan..and I get a 10 point HIT??? lol

[Anonymous]

Probably because of increased loan utilization.

[Remedios]

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@Anonymous wrote:
Probably because of increased loan utilization.

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They paid it off. 

[Anonymous]

Unless I'm misunderstanding, they paid off the partially paid $14,000 loan while they have a brand new car lease I'm assuming near 100%. 

[Anonymous]

Originally we don’t know the $14,000 loan utilization. But if you get rid of a partially paid off loan and put a brand new one it increases to nearly 100%, hence the score drop.

[Anonymous]

That makes sense. Although I figured when they saw two loans my score would go up. Not when I paid one off...unless there is a delay on score changes once new info is recieved.

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@Anonymous wrote:
Originally we don’t know the $14,000 loan utilization. But if you get rid of a partially paid off loan and put a brand new one it increases to nearly 100%, hence the score drop.

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[Anonymous]

During the time period that you had two loans on your record, it would depend on what that took your loan utilization from and to. Would also depend on if any age thresholds were crossed.