Data Points - Paid Car Loan

[credit8502020]

Hi All, 

I hope this post finds you well. I wanted to share some data points.

Recently I paid off my car. I didn't rush to do so because I anticipated a decrease in my scores, but the time had come.

After the new loan reported as closed I saw the following: 

Exp - Decreased by 20 points
Equ - Decreased by 28 points
TU - Decreased by 33 points, after a 16 point increase for paying off the loan the day before. So to me it was really a 17 point decrease. 

Any feedback on what happened to TU? I wonder if the increase and then decrease really happened simulateously, but posted on 2 different days. 

I have another installment loan (student loan) that is on my report. It shows my payment history has been good, but does not show an amount for payments since I will only start repaying it in January. Once I start repaying it and an amount is showing monthly do you anticipate this will help increase my scores?

Should I anticipate I will get these points back within 2-3 months? Any data points you can share will be helpful. I'm looking to strategically get my scores higher that they were before. 

Thank you for your feedback and help! 

[SouthJamaica]

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@credit8502020 wrote:

Hi All, 

I hope this post finds you well. I wanted to share some data points.

Recently I paid off my car. I didn't rush to do so because I anticipated a decrease in my scores, but the time had come.

After the new loan reported as closed I saw the following: 

Exp - Decreased by 20 points
Equ - Decreased by 28 points
TU - Decreased by 33 points, after a 16 point increase for paying off the loan the day before. So to me it was really a 17 point decrease. 

Any feedback on what happened to TU? I wonder if the increase and then decrease really happened simulateously, but posted on 2 different days. 

I have another installment loan (student loan) that is on my report. It shows my payment history has been good, but does not show an amount for payments since I will only start repaying it in January. Once I start repaying it and an amount is showing monthly do you anticipate this will help increase my scores?

Should I anticipate I will get these points back within 2-3 months? Any data points you can share will be helpful. I'm looking to strategically get my scores higher that they were before. 

Thank you for your feedback and help! 

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There's not much you can do about it.  One has to pay off one's car loans.

Unfortunately you won't get a big boost by paying down your sole remaining open loan until you get it down to 9% of the original loan amount.

So you'll have to look for other ways to increase your scores.

The passage of time helps.

[4sallypat]

Yes, that is normal- happened to me at the time we were looking at houses and drove our mortgage broker into a fit.

I had 2 auto loans (lease & loan) and the loan got paid off with a corresponding decrease.

But then as soon as we started applying the monthly monies towards lowering CC debt even more and we reached under 9% UT our FICO and Mortgage 5,4,2, scores climbed rapidly.

Also, as soon as our lease was near maturity (75% paid), our auto scores rose like crazy.

Time, more pay offs and patience paid off.

[Anonymous]

Once the dust settled I recently lost 24 points due to opening a new car loan and the old one closing, not too bad really since I was over 800. Part of me was expecting it to be higher point drop due to the fact the old loan was so low for a long time, and no new accounts for two years.

If I was still on the mid 700's it would have likely impacted my prfile more as it would haev brought me below the 760's FI's like to see for better rates etc.