It's a YUUGGE drop

[ylekiot1]

Hi all, I sold my house and moved to a rental and with some proceeds paid off one car, along with the 1st and 2nd mortgages and paid down some credit.  My scores across the board went from 750 down to 690.  My account ages on all of those now closed accounts were about 3 years so I know the account age changes with open accounts would not have decreased, it would have actually increased.  I really don't know what to think of this.  My credit card utilization has not increased.  I still have one other installment loan so the credit mix is still there for that too.  Anyone seen this type of fluctuation with payoffs?  Not happy here in KC... I pulled one bureau, TU, and dont see anything  out of the ordinary...

[elim]

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@ylekiot1 wrote:

Hi all, I sold my house and moved to a rental and with some proceeds paid off one car, along with the 1st and 2nd mortgages and paid down some credit.  My scores across the board went from 750 down to 690.  My account ages on all of those now closed accounts were about 3 years so I know the account age changes with open accounts would not have decreased, it would have actually increased.  I really don't know what to think of this.  My credit card utilization has not increased.  I still have one other installment loan so the credit mix is still there for that too.  Anyone seen this type of fluctuation with payoffs?  Not happy here in KC... I pulled one bureau, TU, and dont see anything  out of the ordinary...

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    Flawed system or someone's in big banks pocket.   Common complaint and it sux.  Some spend 15 years paying their mortgage on the first of every month, only to lose many points on the day they celebrate the final on-time payment.

   The common direction in a large purchase is to sell one item, then buy the next item with the proceeds. This leaves you app'ing for a new loan at a higher APR...  sounds fishy to me.

[Appleman]

From my understanding, you have moved from a mix of more secured debt (house & cars) to mostly unsecured revolving debt (plus on installment loan).

FICO does tend to punish your score when you finally pay off an installment loan.

You do not list your current utilzation on the revolving debt but paying down that debt will likely be your best option. You could look into a personal loan like SofI, LundingClub, Prosper, Promise (all soft pulls I believe). Transfering your outstanding CC debt to an installment loan has improved scores for many of us on myFICO.

[ylekiot1]

utilization is about 45%, with no card having over 60% utilization.  With the change, housing expenses are now 11% of income so I will just focus on paying it down.  I just didnt expect this type of drop.  I am glad I am not in the need of buying anything, car or house in the next year.  I am more determined to get out of this fico game.  The housing markets are insane so I sold now, and used and new cars are priced to the moon so I refuse to buy anything.  I dont want to participate in this game anymore...will payoff everything and hoard..... Love this site.  It has been very educational and saved me money on past purchases with proper planning/timing.

[RonM21]

The scoring can sometimes get you down, but you making the right moves will play out in your scores in the long run.