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Drop my score for paying my bills?

New Visitor

Drop my score for paying my bills?

i have my phone set up to notify me through myFico if there is a change in my score. Well, today it let me know that there had been a change so I checked, and my score was dinged 15 points!  It was due to a personal loan that I paid off with my local bank. Last June, I found a motorcycle I liked, and had some discretional spending money but needed an additional $2,400. Also my credit report was telling me that a personal loan may boost my score. So, I made the loan for $2400.00, and payments started last July 1st.  I made every payment on time and occasionally would pay an extra 20 to 50 bucks on the note.  This January, with my tax refund I paid this note off ($358.00), got a thank you letter from bank, telling me if I ever have further needs just ask. Now today, this! Why am I being punished for being responsible and paying my bills in a timely manner? Last year, I asked the loan officer if I would owe any penalty for an early pay off and she said no, it would be perfectly fine.  Why do the credit reporting agencies penalize me? Ok, sorry for the rant, my primary question is if I have any recourse in disputing this unfair practice?

Message 1 of 3
Super Contributor

Re: Drop my score for paying my bills?

Welcome to the forum (posting wise)

Fico 08 is known to ding for not having an installment loan 

So even tho you've had a perfect payment history and paid it off early (If I read correctly) you now have no installment loan in 08 eyes 

The good news is you have just created a positive TL for up to ten years and 15 points will return in no time IMHO

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 2 of 3
New Visitor

Re: Drop my score for paying my bills?

Thanks for your response Kudo1!
Message 3 of 3
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