Re: Fico score just dropped :(

Anonymous · ‎05-13-2018

good news... I paid off my truck with a Hyatt card and spend over $2k to get the 40k point bonus...

BAD NEWS... my 3.5 year old car loan went from open to closed account and that was my oldest account on my file.... dropping my aaoa big time dropping my score

EW800 · ‎05-13-2018

Our experts in this area can confirm if I am right or wrong about this, however I believe that it is only Credit Karma that does not include closed accounts in the AAoA. If I am not mistaken, FICO does include closed accounts in the AAoA. If I am correct about this, I am thinking that if this was your only installment loan, then the fact that you no long have an open installment loan is what caused the score drop.

Like I said, our resident experts will know better than I will.

Congrats on getting the truck paid off. No matter the scoring issue, I assume you are saving some interest!

Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Sept 2024: EX8: 847; EQ8: 850; TU8: 848 -- Middle Mortgage Score: 821
In My Wallet: Discover $73.7K; Cap1 Venture $51.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $24.5K; Cap1 Plat $8.4K; Barclay $7K; Chase Amazon $6K; BoA Plat $21.6K; Citi TY Pref $22K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $300K+
My UTIL: Less than 1% - Only allow about $20 a month to report, on one account. .

Anonymous · ‎05-13-2018

Congrats on paying off your car loan.

Anonymous · ‎05-13-2018

@Anonymous
BAD NEWS... my 3.5 year old car loan went from open to closed account and that was my oldest account on my file.... dropping my aaoa big time dropping my score

The post above by EW800 is correct. Your score did not drop due to any age of accounts changes. FICO scoring considers open and closed accounts equally in terms of AAoA. Your closed account will remain on your report for roughly another 10 years, positively impacting your AAoA until it's 13.5 years old and falls off.

If this was your only open installment loan, closing it did damage to your "credit mix" and that's why you saw a score drop. Typically FICO score drops due to this land in the 20-30 point range give or take.

SouthJamaica · ‎05-13-2018

@Anonymous wrote:
good news... I paid off my truck with a Hyatt card and spend over $2k to get the 40k point bonus...

BAD NEWS... my 3.5 year old car loan went from open to closed account and that was my oldest account on my file.... dropping my aaoa big time dropping my score

When an account goes from open to closed, it doesn't affect your average age of accounts in FICO.

However, if it's your only installment loan, you lose points for "credit mix" in your FICO 8 score, no longer having an open installment loan. (I think it's ridiculous but it is what it is).