FICO decrease

[Anonymous]

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@Newbie2018My score hit rock bottom once my old car loan was closed and paid. I lost a great deal of points. Then today Experian reported my new car loan it it dropped 23 more points. I'm sad. I knew I'd see a decrease but not one as great as this one. My new age of credit is 1 year and 1 month. I feel like I'm back to square one and all my hard work was for nothing. So, anyone have any clue why it would decrease so much?

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Where are you getting your scores from?  Your age of accounts factors did NOT drop.  I'm not sure where you're getting that from.  Maybe from a bogus source such as CK?  Closing an account does not impact your age of accounts factors such as AAoA at all.  FICO scores are what matters.  If you aren't looking at FICO scores, forget what you're looking at.  It's typical to see a 25-30 point FICO score drop if you go from having an almost-paid-off installment loan to no open installment loan at all.  Don't sweat it, though.  Look into opening up a secured loan to get back those 25-30 points within 1 month.  No big deal.  Again, let me reiterate that your age of accounts factors did not change with the closing of your loan.

[Newbie2018]

I get all real fico scores. I don't use credit karma for anything but reporting dates etc. I know the scores aren't accurate. I forgot to mention a new cc account reported also. So that may be the reason for the age drop.

[Newbie2018]

Also, the car loan that I refinanced was nowhere near paid off. The new auto loan with dcu is actually about $400 more than the original loan I had with Santander. Because I added gap insurance. When the new loan reported it decreased. I have a small installment loan open that is only $179 left to pay. Other then that no other loans. Just credit cards.

[SouthJamaica]

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@Newbie2018wrote:
My score hit rock bottom once my old car loan was closed and paid. I lost a great deal of points. Then today Experian reported my new car loan it it dropped 23 more points. I'm sad. I knew I'd see a decrease but not one as great as this one. My new age of credit is 1 year and 1 month. I feel like I'm back to square one and all my hard work was for nothing. So, anyone have any clue why it would decrease so much?

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FICO 8 unfairly penalizes you for having no open installment loans.

Then, once you got the new loan, it penalized you for having a high percentage utilization.

On a positive note,

1. the other FICO scores don't react as strongly

2. the FICO 8 will pick up as you pay down the new loan

[Anonymous]

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@Newbie2018Also, the car loan that I refinanced was nowhere near paid off. The new auto loan with dcu is actually about $400 more than the original loan I had with Santander. Because I added gap insurance. When the new loan reported it decreased. I have a small installment loan open that is only $179 left to pay. Other then that no other loans. Just credit cards.

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Can you quantify these dollar amounts in terms of utilization percentages?  Basically just amount owed divided by original balance?

If you have just one open installment loan, going from a 100% utilization (brand new loan) down to 8.9% or less of a balance relative to the original amount should result in a 20-30 point difference.  Going from 8.9% or less of a balance to $0 (loan reports closed) should be 20-30 points again, in the other direction.

[Newbie2018]

**UPDATE*
GOT SOME DATA POINTS SOMEHOW ON TRANSUNION TODAY AND EQUIFAX TODAY. NOT SURE HOW MUCH BECAUSE I DIDNT CHECK FICO YET. I KNOW CK ISN'T A GOOD TOOL TO USE FOR SCORES SO I WONT BORE YOU WITH THE DATA POINTS THEY GAVE ME (ALOT BY THE WAY) BUT I WILL UPDATE IN A FEW DAYS WHEN I PULL MY FICO. MAY HAVE BEEN BECAUSE ONE OF MY ACCOUNTS HIT THE 1 YEAR MARK AND ANOTHER HIT THE 3 MONTH MARK. NOT QUITE SURE IF THAT FACTORED IN THERE IM JUST HAPPY TO GAIN SOME POINTS BACK 😉

[Anonymous]

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@Newbie2018I get all real fico scores. I don't use credit karma for anything but reporting dates etc. I know the scores aren't accurate.

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I know you said this earlier in the thread, which is great, but in your previous post you're extremely happy due to seeing a CK score increase?

[Newbie2018]

Yes I said I know that the scores aren't accurate on CK. I use them to see my reports. And my last post I said that I gained some points back because ck had an increase in scores. Usually when I get any increase on ck I get some on FICO. So that's why I'm happy. I'm just gonna stop updating. Don't know where this is going. I'm not telling anyone to go use CK to get scores or to get there hopes up because of CK. Sorry!

[Remedios]

It's ok for you to be excited, drop or gain. You're doing something to better your life. Looking forward to seeing your updates. 

[Newbie2018]

I did check my FICO and my Transunion gain was pretty good. Up to a 669. Was at 683 before the drop.