@Anonymous wrote:I paid off one of my student loans this month, and today I got an update from Experian saying that 1) the account was marked closed paid and 2) my score dropped 30 points.
Experian has one other student loan that's about 50% paid off at $2,500, but doesn't seem to be reporting original balance or usage, just current balance. Could that affect it?
Equifax also dropped, and the paid-off loan was the only installment account being reported. Would it be worth opening an SSL somewhere like NFCU to get another installment account on Equifax?
I don't think that would help in this situation. Probably what happened is your aggregate installment utilization went up when the loan got paid off. If the remaining open loan isn't being reported properly you might want to dispute that, as it should show the original loan amount and the current balance. If that's your only loan, once it's down to 9% of the original loan amount you should get a bonus in your FICO 8 scores.
Take comfort in the fact that the mortgage scores are much less impacted by this kind of thing.
