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OK point drop experts, riddle me this

bourgogne
Valued Contributor

OK point drop experts, riddle me this

Hi there!  got a cash out car refi and a credit card from dcu last month.  both reported to EX.  The original Penfed loan just dropped off and I lost 31 pts.  I seem to recall there is a 2-3 month adjustment period where the new loan needs to be paid down or something but what is the deal, isn't the new DCU loan supposed to shore this up?   Thx!

 

111121 POINT DROP.JPG

Message 1 of 4
3 REPLIES 3
SouthJamaica
Super Contributor

Re: OK point drop experts, riddle me this


@bourgogne wrote:

Hi there!  got a cash out car refi and a credit card from dcu last month.  both reported to EX.  The original Penfed loan just dropped off and I lost 31 pts.  I seem to recall there is a 2-3 month adjustment period where the new loan needs to be paid down or something but what is the deal, isn't the new DCU loan supposed to shore this up?   Thx!

 

111121 POINT DROP.JPG


Aggregate installment loan utilization percentage can have a substantial effect on your FICO 8 and FICO 9 scores.

 

If you only have one open loan, and your old loan was mostly paid off (defined as below 10%), and your new loan is not paid off at all, you would get a point drop.  When your new loan is paid down to below 10% you'll get your points back.  Some folks think you get some of the points back on the way down from 100% to 9%, but I couldn't detect that in my profile, after testing it multiple times.


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 2 of 4
bourgogne
Valued Contributor

Re: OK point drop experts, riddle me this


@SouthJamaica wrote:

@bourgogne wrote:

Hi there!  got a cash out car refi and a credit card from dcu last month.  both reported to EX.  The original Penfed loan just dropped off and I lost 31 pts.  I seem to recall there is a 2-3 month adjustment period where the new loan needs to be paid down or something but what is the deal, isn't the new DCU loan supposed to shore this up?   Thx!

 

111121 POINT DROP.JPG


Aggregate installment loan utilization percentage can have a substantial effect on your FICO 8 and FICO 9 scores.

 

If you only have one open loan, and your old loan was mostly paid off (defined as below 10%), and your new loan is not paid off at all, you would get a point drop.  When your new loan is paid down to below 10% you'll get your points back.  Some folks think you get some of the points back on the way down from 100% to 9%, but I couldn't detect that in my profile, after testing it multiple times.


thank you for the well crafted response, I appreciate it.  I think you are spot on, I now see my EQ did a 44 pt dump and the reason is loan balance.  my goodness lol, what can you do.  have a nice weekend when it comes, be safe

Message 3 of 4
LP007
Regular Contributor

Re: OK point drop experts, riddle me this


@SouthJamaica wrote:

@bourgogne wrote:

Hi there!  got a cash out car refi and a credit card from dcu last month.  both reported to EX.  The original Penfed loan just dropped off and I lost 31 pts.  I seem to recall there is a 2-3 month adjustment period where the new loan needs to be paid down or something but what is the deal, isn't the new DCU loan supposed to shore this up?   Thx!

 

111121 POINT DROP.JPG


Aggregate installment loan utilization percentage can have a substantial effect on your FICO 8 and FICO 9 scores.

 

If you only have one open loan, and your old loan was mostly paid off (defined as below 10%), and your new loan is not paid off at all, you would get a point drop.  When your new loan is paid down to below 10% you'll get your points back.  Some folks think you get some of the points back on the way down from 100% to 9%, but I couldn't detect that in my profile, after testing it multiple times.


Yuuuup, saw the same. That 9% plateau is key.






Message 4 of 4
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