@Anonymous wrote:
@Gonzozap
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.
The reason you didn't get the points back has far more to do with utilization than it does with aging. Yes, your age of accounts factors may have dropped due to the new loan reporting, but the big difference is that you went from a presumably low balance loan relative to the original balance to a brand new one, at 100% utilization.
Understood. But that can't be the sole factor because I did recoup 21 of the 30 points after about 90 days with no change in my other accounts - other than the fact that my other accounts had aged for 90 more days. Actually, my new loan amount was less than the balance on my old loan. My prior loan was fairly new (only 6 payments made) and I put down a sizeable down payment to drop my monthly payment even lower and not extend the term. I can see that my score would drop a few points, but 30 points just blew me away. I'm thinking it may have had more to do with the fact that I lost my only installment loan when the prior loan was paid. And I gained some points back when the new loan reported.
