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EQ score went from 704 to 634 after car loan

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beep315
Established Member

EQ score went from 704 to 634 after car loan

I was so proud that I had gotten my score from 505 to 704 in about 2 years. Receiving the 704 score coincided with me needing a new car right before Christmas, so I went to Toyota and got 0.9% financing for a new Camry. Now, my score has dropped 70 points to 634 in the last two weeks. Is this a normal score reaction to the new car loan? Nothing else has changed, in fact some delinquent student loan payments have finally fallen off after nearly 7 years. When can I expect my score to go back up?

 

Thanks for the help!

Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: EQ score went from 704 to 634 after car loan

DH dropped 2 points when he app'd for his car loan (went from 762 to 760), so a 70 point hit seems a bit much to me.

 

If your delinquent student loans have fallen off, I'm betting dollars to donuts that you were rebucketed.  You're now in a different scoring group and you're being compared with a different group of folks.  The good news is that your new bucket has a higher ceiling - so you can grow.

 

What other accounts do you currently have open?  And do you have any other baddies on your report?

Message 2 of 6
Jazzzy
Valued Contributor

Re: EQ score went from 704 to 634 after car loan

Hi...first, let me ask...did you get both of these scores from the same source? Are they both FICOs from the same company (EQ or TU)? Auto dealers often use an auto enhanced FICO model, and it's good to make sure you're comparing apples to apples.

 

I would be surprised if a 70 point drop is normal for a car loan. I have a very thick, older file...and my FICO didn't hardly bleep when I got a car loan in November.

 

If you had delinquent student loans fall off, it's possible that you were rebucketed. There are FICO scoring "buckets"...for lack of a better term. Your score may have been previously compared with others who had derogatories. Now, with them gone...if you have a clean report...you may be being compared with others who have clean reports. You and your history maybe don't look quite as stellar against those with clean histories. Sometimes...in FICO scoring...you have to take a step back in scoring when you are rebucketed, but your score will soon recover if that is the case. Rebucketing is a good thing. It means that your score can eventually go higher. (Even though it stinks when it first happens...)

 

How delinquent were the student loans? How were they showing on your reports?

Message 3 of 6
beep315
Established Member

Re: EQ score went from 704 to 634 after car loan

My scores I checked were both from EQ directly from myfico. The student loan had 3 months of 150 day lates in early 2003 before I straightened everything out. I actually was surprised that my credit score was in the 700's because I have kind of high utilization on my credit cards. The only other thing on my credit report is a collection fee I am disputing with my gym and a paid BMG collection. I have paid everything on time for the last 7 years. Not even one late.

 

Thanks for any insight!

Message 4 of 6
Jazzzy
Valued Contributor

Re: EQ score went from 704 to 634 after car loan

Those 150-day lates had you in a derogatory bucket...and now they are gone. You apparently still have some collections listed, however, so I hope someone else comes along who may have input on whether you were rebucketed.

 

If you have fairly high utilization, that may be your key to raising your FICOs.

 

Was the BMG collection legitimate? When will it fall off your reports?

Message Edited by LynetteM on 01-14-2010 12:41 PM
Message 5 of 6
Anonymous
Not applicable

Re: EQ score went from 704 to 634 after car loan


beep315 wrote:

My scores I checked were both from EQ directly from myfico. The student loan had 3 months of 150 day lates in early 2003 before I straightened everything out. I actually was surprised that my credit score was in the 700's because I have kind of high utilization on my credit cards. The only other thing on my credit report is a collection fee I am disputing with my gym and a paid BMG collection. I have paid everything on time for the last 7 years. Not even one late.

 

Thanks for any insight!


Hi beep315!

 

When did you dispute with your gym? Is the account still listed as "disputed by consumer"? What about the BMG collection-- when did you pay it? What is the DoLA (date of last activity) listed for this account?

Message 6 of 6
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