Hello all,
I recently pulled a new experian report and found out that my score decreased by 20 points because I traded in my car in (New car has not been reported yet). I understand the reason byhind the decrease. On one hand it will say that my loan balances are too high so im penalized then it will decrease points for it being paid. My mortgage score dropped almost 40 points. I just dont understand this game. I feel like its a situation I will never win! 
Starting Score: 530EQ, 531TU, 514EX (0/2016)
@Anonymous wrote:Interesting. So the Experian tool gives you both your Experian FICO 8 and your Experian FICO 2 (the EX mortgage score)... is that right? What is the name of the credit monitoring service you are using?
How much time has elapsed between the two times you pulled your mortgage score? It's useful for us to hear that the EX mortgage score went down -- that has been the received wisdom here on the forums, but good to hear that confirmed. The EQ and TU mortgage scores are supposed to be unaffected by loan amounts.
Was this auto loan the only installment account you had? (No other loans, car leases, financing of furniture at Rooms To Go, etc.)
What was the balance and the original loan amount prior to the payoff?
You mention your mortgage score. Are you thinking about buying a house any time in the next year or two? If so, what's your timeline?
I use the experian tool directly off thier site. It allows me to pull my scores daily which I have been doing to see when the pay off would be reported. Yes the experian tool actually gives me my fico 8, mortage, all the auto and credit card versions.
Only 2 days have lapsed and nothing else has changed. I have student loans on my report but no other loans. My new auto loan has not reported yet.
@Anonymous wrote:A couple of things. One, you stated that the new loan has not yet reported yet. That being said, you aren't being viewed as being at 100% installment loan utilization since it has yet to be factored into the FICO algorithm due to its absence from your report.
Are you certain that the old loan has reported as closed?
If you have active student loans, I wouldn't have anticipated a 20 point score drop on any of your scores, as the auto loan that you just closed wasn't your only installment loan. Sometimes people see small score increases (say around 5 points) when closing an auto loan even if they have another open installment loan and installment loan utilization remains the same. This happened to me about 6 weeks ago when I closed my only open auto loan, leaving just my mortgage. Installment loan utilization didn't change much at all due to the relative size of the mortgage to the auto loan, but I did see score drops of 3-6 points. On the auto score models you'll probably see a negative reason statement to the tune of "no open auto installment loan present" - it sounds like you may be able to check that with the CMS you are using.
Im positive it was closed and it states paid. You are correct that my most recent loan has not been added. I really hope that changes things
No student loan payments have been made therfore no changes to my loan. The old car loan didnt get reported until 4/30/18. It states paid in full but doesnt say $0. It just a line for the balance dash (---) on the balance part.
@Washin17 wrote:Hello all,
I recently pulled a new experian report and found out that my score decreased by 20 points because I traded in my car in (New car has not been reported yet). I understand the reason byhind the decrease. On one hand it will say that my loan balances are too high so im penalized then it will decrease points for it being paid. My mortgage score dropped almost 40 points. I just dont understand this game. I feel like its a situation I will never win!
I had the same thing happen. I traded my car & bought a new one, and when the old loan finally showed as paid/closed, my score dropped by 30 points. I too understand why, but jeez, what a punishment. Did not get the points back with the new loan cuz the aging changed so much.