Paid off loan dropped my credit score

Anonymous · ‎04-09-2015

When I checked my Experian credit score this morning, it went from 869 to 798. I paid off a loan the end of January, and I guess they now know that it's paid off. I'm deflated. Will my score bounce back? I have no negatives, no lates, my utilization is probably like 3% total across my cards.

Anonymous · ‎04-09-2015

It will bounce back, but if that was your only installment loan the recovery will be slow and it may not achieve the same level. BTW, what scoring model is that? If Fico, it must be one of the Bankcard versions.

Anonymous · ‎04-09-2015

The highest FICO score possible is 850 so there's no way you had a FICO score of 869. Are you cheking on Credit Karma? I know they use VantageScore which used to have credit scores that went to 990, but they have changed this to be in line with FICO scores, so now their highest is also 850. This is the only way your score could have been over 850 and is probably the reason it is now lower. By the way, VantageScore is NOT a FICO score.

Ghoshida · ‎04-09-2015

@Anonymous wrote:
The highest FICO score possible is 850 so there's no way you had a FICO score of 869. Are you cheking on Credit Karma? I know they use VantageScore which used to have credit scores that went to 990, but they have changed this to be in line with FICO scores, so now their highest is also 850. This is the only way your score could have been over 850 and is probably the reason it is now lower. By the way, VantageScore is NOT a FICO score.

Not true.

FICO has special scores, and the OP might be using FICO Bankcard scores from places like FNBO and Citi. They typically range from 250-900 and are not FAKOs.

With regards to OP, not having an installment loan seems to have a higher impact on Bankcard scores in my experience; your vanilla FICO scores should take a lower hit. You might want to check the vanilla scores and see how much they went down.

CreditCuriosity · ‎04-09-2015

No installment loan will hurt your score. Part of the credit mix. 04 Models don't seem to react near as bad as 08 models.. Recently paid off my old car loan/installment loan hardest hit was Equifax at -36 points... Waiting for new one to report and hopefully get most of it back. Other TU and EX took hits, just not as bad and they new installment loan has hit those two bureaus and they are mainly back to what they were, but waiting for EQ.. So yes it will hurt you. Your scores are still really good regardess

Kostya1992 · ‎04-09-2015

@CreditCuriousity wrote:
No installment loan will hurt your score. Part of the credit mix. 04 Models don't seem to react near as bad as 08 models.. Recently paid off my old car loan/installment loan hardest hit was Equifax at -36 points... Waiting for new one to report and hopefully get most of it back. Other TU and EX took hits, just not as bad and they new installment loan has hit those two bureaus and they are mainly back to what they were, but waiting for EQ.. So yes it will hurt you. Your scores are still really good regardess

How does a loan at 120% util (unsubsidized with accured interest) affect your score compared to a loan at 5%?

TU08 FICO	850
EX08 FICO	850
EQ08 FICO	850

Anonymous · ‎04-10-2015

This is the Bankcard 08 FICO score. Not FAKO. I read that my scores would drop, but I didn't know they would drop that much. This is the score provided to me by FNBO.

Anonymous · ‎04-10-2015

@CreditCuriousity wrote:
No installment loan will hurt your score. Part of the credit mix. 04 Models don't seem to react near as bad as 08 models.. Recently paid off my old car loan/installment loan hardest hit was Equifax at -36 points... Waiting for new one to report and hopefully get most of it back. Other TU and EX took hits, just not as bad and they new installment loan has hit those two bureaus and they are mainly back to what they were, but waiting for EQ.. So yes it will hurt you. Your scores are still really good regardess

+1

Your credit mix might be lacking - They like to see different types such as installments (auto or home), revolver, etc.

Anonymous · ‎04-11-2015

@Anonymous wrote:
When I checked my Experian credit score this morning, it went from 869 to 798. I paid off a loan the end of January, and I guess they now know that it's paid off. I'm deflated. Will my score bounce back? I have no negatives, no lates, my utilization is probably like 3% total across my cards.

Sorry. It feels A W E S O M E to PIF an account, but it hurts your FICO scores. Keep up the good work!!!