Credit score dropped 38 points

Anonymous · ‎01-16-2019

Hello,

Every month my bank of america account notify me my FICO score. As per that result my score was exceptional for the last two years.

Last month it was 828 (exceptional) and suddenly it dropped 38 points in this month. Now it is in 790.

In November 2018, I have completly paid off my car loan and i dont know that could result a huge drop of my credit score.

Another thing is I recently found out that our gas company was not deducting monthly payments from my bank account. We recently moved to a new aprtment and I setup a automatic payment for the gas and eectricity, but for some reason gas company was not deducting the money for monthly payment for few months. Once I noticed that I inform them and they fixed it. later I asked them whether they have reported the payment delay to credit bureau, but they said they dont do that. So I'm not sure what cause my credit to be dropped.

I have never requested a credit report from credit bureau. I know we can request a one for free. I'm going to do it now.

But I just wanted check with experiance people here, is there any thing that I should do other than checking my credit reports from credit bureau?

Thanks.

rbentley · ‎01-16-2019

@Anonymous wrote:
Hello,

Every month my bank of america account notify me my FICO score. As per that result my score was exceptional for the last two years.
Last month it was 828 (exceptional) and suddenly it dropped 38 points in this month. Now it is in 790.

In November 2018, I have completly paid off my car loan and i dont know that could result a huge drop of my credit score.
Another thing is I recently found out that our gas company was not deducting monthly payments from my bank account. We recently moved to a new aprtment and I setup a automatic payment for the gas and eectricity, but for some reason gas company was not deducting the money for monthly payment for few months. Once I noticed that I inform them and they fixed it. later I asked them whether they have reported the payment delay to credit bureau, but they said they dont do that. So I'm not sure what cause my credit to be dropped.

I have never requested a credit report from credit bureau. I know we can request a one for free. I'm going to do it now.

But I just wanted check with experiance people here, is there any thing that I should do other than checking my credit reports from credit bureau?

Thanks.

If your car loan was your only open installment loan, that is likely the cause. A drop between 20-40 points is well documented. You do need to get your reports to check for other factors such as the aging off of old closed trade lines.

Anonymous · ‎01-16-2019

A reported late payment would have dropped your score to the tune of 50-100 points, so that's ruled out here.

Closing your only open installment loan is usually good for around a 30 point drop, which seems about on par with what you had going on.

Anonymous · ‎01-17-2019

They need to fine-tune the scoring methodology: reward people for paying of debt, not punish them.

gorgon · ‎01-17-2019

@Anonymous wrote:
They need to fine-tune the scoring methodology: reward people for paying of debt, not punish them.

If you're not using any of your available credit then there is nothing for credit bureaus to score you on. If they rewarded people for paying off their loans, everyone could be at 850 with no effort.

Anonymous · ‎01-17-2019

My score only dropped between 17 and 35 points (depending on the CRA) for a reported 30 late and a hard pull for a new CC. They both hit around the same time. I have had the late reporting removed as written elsewhere.

Anonymous · ‎01-17-2019

Some do not pay off their loans. Some that do pay off their loans do not always pay in a timely manner. A non 850 credit score would be very possible and probable. Those with high CS (self included) that pay off their CC every month are rewarded for paying timely and in full.

Anonymous · ‎01-17-2019

Which is exactly the way it's supposed to be. No debt, GREAT! It means somebody is doing a good job handling their responsibilities.

SouthJamaica · ‎01-17-2019

@Anonymous wrote:
Hello,

Every month my bank of america account notify me my FICO score. As per that result my score was exceptional for the last two years.
Last month it was 828 (exceptional) and suddenly it dropped 38 points in this month. Now it is in 790.

In November 2018, I have completly paid off my car loan and i dont know that could result a huge drop of my credit score.
Another thing is I recently found out that our gas company was not deducting monthly payments from my bank account. We recently moved to a new aprtment and I setup a automatic payment for the gas and eectricity, but for some reason gas company was not deducting the money for monthly payment for few months. Once I noticed that I inform them and they fixed it. later I asked them whether they have reported the payment delay to credit bureau, but they said they dont do that. So I'm not sure what cause my credit to be dropped.

I have never requested a credit report from credit bureau. I know we can request a one for free. I'm going to do it now.

But I just wanted check with experiance people here, is there any thing that I should do other than checking my credit reports from credit bureau?

Thanks.

If the car loan was your only open installment loan, paying that down to zero could have caused the point loss in FICO 8.