FICO SCORE WITH REFINANCING LOANS

[senseidab]

I just refinanced 2 auto loans,1 personal loan and a student loan.  I dropped 10 points aleardy with Experian with just 1 auto loan showing closed "paid as agrred"

QUESTION    Should I expect to coninue losing points as the loan are reported closed? and will I pick up points when the new loans are reported on the FICO ?  Thank you in advance for your replies.  DB

[Revelate]

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@senseidab wrote:

I just refinanced 2 auto loans,1 personal loan and a student loan.  I dropped 10 points aleardy with Experian with just 1 auto loan showing closed "paid as agrred"

QUESTION    Should I expect to coninue losing points as the loan are reported closed? and will I pick up points when the new loans are reported on the FICO ?  Thank you in advance for your replies.  DB

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No, FICO 8 calculates installment utilization, so paying off loans (closed) unfortunately discounts them from the calculation.  

Depending on what your ratios were before (aggregate current balance / aggregate original balance) on your loans will determine if you take another drop or not, but I'm guessing you were at somewhere above 10% aggregate previously and as such you'll probably be fine unless you cross an AAOA boundary when the new loan reports; there's only two breakpoints, one at 10% (or 9% given how FICO appears to round up) and one around 70%.

[Appleman]

As you refinance you are altering the utilzation on your loans. The utilization does not seem to play as big an impact as saying maxxing out the Discover card.

However, you now owe 100% of each of the loans you have refinanced. As you make payments the utilization compared to the initial loan will drop.

I am unsure at what point you pick up points you lost but hopefully the refinance saved you some interest which is the goal.