Help me understand...

[Anonymous]

I traded in a vehicle recently for a new one, and for a while, both the paid trade in loan and the new vehicle loan were naturally on my CRs.  Today, the trade-in auto loan (only one year old) through BMO Harris finally reported as PAID on my TU and EQ reports and my score went down 9 points and 17 points respectively. 

It was a loan I held for a very short time (12 months almost exactly), and I have a lot of line items much much older, so it's not like an account with considerable age came off - and the loan amounts of the old vs. new were relatively equal (both roughly $32k).   Just curious of anyone can give quick insight as to why the dramatic drop?

Thanks in advance.

[blindambition]

Would need more info on reporting, and any other changes.

If nothing else has changed, it's likely new loan maxed out. Basically showing maxed at 100!. You'll get back points as you pass thresholds, but most points on loans are gained when under 8.9%.

[Anonymous]

Thanks for the insight - the only recent change is the approval of a Costco Visa, but it hasn't hit my reports yet, and a Goodwill late removal, but that also hasn't hit my report yet.  This is the only change in months and months, so it is probably what you're suggesting!  Thanks again!

[Kforce]

3 things I can think of.

1)  You have new hard pull for the new loan, maybe even two or three.

2) You reset the youngest account date by the new loan, 12 months back to 0.

3) Your new loan utilization is 32,000/32,000 (100%), old loan was maybe 80-90% utilization.

A few points from each, they add up.

[Anonymous]

Thank you KForce! - isn't it true though that when shopping auto or mortgage loans, multiple pulls in the same short span only count as 1 "hit"?

[blindambition]

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@Anonymous wrote:

Thank you KForce! - isn't it true though that when shopping auto or mortgage loans, multiple pulls in the same short span only count as 1 "hit"?

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That is only true if they are all coded the same. Often times they aren't.

[Kforce]

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@Anonymous wrote:

Thank you KForce! - isn't it true though that when shopping auto or mortgage loans, multiple pulls in the same short span only count as 1 "hit"?

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Yes, however it doesn't always work.

They fall away from scoring in a year, so a little time will fix worst case.

Saving interest on a new loan is more important than a few points from "Fico".

Any new CC or loan hurts score a little, it is part of the game.

You will take another hit when that card reports 

[SouthJamaica]

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@Anonymous wrote:

I traded in a vehicle recently for a new one, and for a while, both the paid trade in loan and the new vehicle loan were naturally on my CRs.  Today, the trade-in auto loan (only one year old) through BMO Harris finally reported as PAID on my TU and EQ reports and my score went down 9 points and 17 points respectively. 

It was a loan I held for a very short time (12 months almost exactly), and I have a lot of line items much much older, so it's not like an account with considerable age came off - and the loan amounts of the old vs. new were relatively equal (both roughly $32k).   Just curious of anyone can give quick insight as to why the dramatic drop?

Thanks in advance.

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1. What scores are you referring to? 

2. Did you have any other open installment loans?

[Anonymous]

The dealership only ran me through Hyundai Motor Finance to take advantage of the rebate offers, and the inquiry notice popped up a couple days after.  It was two inquiries, and only through TU - both listed as divisions of HMF.  

I'm referring to my Fico 8 scores with TU and EQ.  EX doesn't have the loan reported yet.  TU went down 9 pts, EQ 17 pts down.

I have an open installment loan on my older car that has 10 months left.  The other was the trade in through BMO Harris that came off my report.  Basically, I had 2 installment loans for 2 cars - one 12 months old, one 4 years old.  I bought a new car, so for a short time, there were 3 installment loans on my reports.  Today, the trade in loan (paid off with the trade) came off, and triggered the hit.

[SouthJamaica]

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@Anonymous wrote:

The dealership only ran me through Hyundai Motor Finance to take advantage of the rebate offers, and the inquiry notice popped up a couple days after.  It was two inquiries, and only through TU - both listed as divisions of HMF.  

I'm referring to my Fico 8 scores with TU and EQ.  EX doesn't have the loan reported yet.  TU went down 9 pts, EQ 17 pts down.

I have an open installment loan on my older car that has 10 months left.  The other was the trade in through BMO Harris that came off my report.  Basically, I had 2 installment loans for 2 cars - one 12 months old, one 4 years old.  I bought a new car, so for a short time, there were 3 installment loans on my reports.  Today, the trade in loan (paid off with the trade) came off, and triggered the hit.

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How do you know the loan came off today?

How do you know the hit was triggered today?

Where are you getting the FICO 8 scores from?