@brad0502 wrote:In July I traded in a truck and leased a new truck. In the same month I sold a snowmobile that I had a loan against it. My new auto lease reported before the other two loans reported paid in full. Just got the update today and my experian dropped 22 points, and my equifax dropped 19 points. Why? I am in the process of house hunting and this could easily take me out of contension. I am truly scared to see what transunion does. It has run about 15-20 points less than the others after my discharged BK in 2019. I currently still have 2 auto loans. One of which is the oldest. Can anyone make sense of this, and possible advise?
It's very possible that your aggregate installment loan utilization increased.
1. First take the balance on the old truck lease just before you traded it in, the balance on the snowmobile lease before you sold it, and the balances on the 2 auto loans, and total those up.
2. Then take the original amounts of the old truck lease, the snowmobile lease, and the 2 auto loans and total those up.
3. Then divide the total balances by the total limits, and that will tell you your installment loan utilization percentage.
4. If that percentage is less than 10%, that's your answer, you were in the sweet spot for installment utilization before you shuffled things around. And now you're not in the sweet spot any more.
5. This can have a big effect on your FICO 8's and 9's, but usually has little or no effect on your mortgage scores.
@brad0502 wrote:Not sure if I am understanding... the loan balances on all vehicles before payoff was 76,660. The original amount borrowed total was 99,865. By dividing I am coming up with %76.
OK so you weren't in the sweet spot, so an increase in installment utilization wasn't the cause.
I don't know why your score dropped so much. But I can tell you that opening up new accounts in the runup to a mortgage application is a big mistake, because of inquiries and new accounts. You shouldn't take out anything in the 12 months prior to a mortgage. So you're probably just paying the price for taking out the new truck lease.