Hello Fico fam. ,
New poster here sorry if in the wrong section .. my question to you all is im trying to figure out why the point drop. Under the credit alerts using experian website it shows loan paid jan 1st then on jan.5 score dropped 22 points for me and 32 for the wife. this is the message it says under loan paid..
SECURITY SERVICE FCU has reported Positive Activity - LOAN PAID.
Well done! Your loan is reported as paid with a zero balance. This activity may positively impact your Credit Score.
well just little confused being that it says will positively impact but it didnt ? No other changes that i can see.
Thanks for the help in advance , me and the wife are hoping to try get a mortgage loan around the 4th quarter of this year im just waiting for a few things to drop off my report and the wife is pretty much 100% good. seeing this drop is a bummer.
Paying off a loan will not positively help anyone under FICO 8/9 and maybe other models too. That is an unfortunate bit of verbiage from Experian. Will help DTI admittedly but FICO doesn't track that.
+1 Oldman, with the size of the drop it was probably the only open installment loan, or aggregate went from <9% to whatever the highest tier is.
Thank you guys for taking the time to reply ,
After re checking the report from experian you are correct oldman87 , my Dec23 report shows 1 installment account vs Jan5 shows 0. MMM.. i dont know what to do now looking foward to increase our credit scores in helping our chances on a mortgage loan 10 months from now. This loan i paid was a loan where i used my own money and borrowed againts it type thing at my credit union. Thanks again for the help in understanding why the point drop i guess next time i wont look foward to paying off my only installment account. 
Installment loans don't factor into either EQ FICO 5 or TU FICO 4 except for mix of credit and the closed installment line is fine for that.
EX FICO 2 is influenced by installment utilization based on my data, but not to the same extreme. Really, I'd find out what my mortgage scores were before doing anything honestly, FICO 8 is not a valid measurement for it.
Ok thank you for the tips i will need to look into that next being that will be our goal pretty soon . Earlier today i had gotten a offer from experian for the mortgage scores or is through the fico website more accurate in what the lenders use?
@Fico82 wrote:
Ok thank you for the tips i will need to look into that next being that will be our goal pretty soon . Earlier today i had gotten a offer from experian for the mortgage scores or is through the fico website more accurate in what the lenders use?
I think the Experian one is only EX FICO 2.
To my knowledge the only place to get all 3 is through myFICO or a lender pull (which is suboptimal as it takes an inquiry on all 3 bureaus).