Paid off my Auto Loan and score dropped. Ugh!

[sjt]

I posted in the thread that is now closed that I did not receive a score bump for my auto loan balance that was under 8.9%. (https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Credit-Scoring-Primer-pub-5-17-20/td-p/6...). I misspoke. I didn't realize that my EX and TU were not updated. When both CRA updated a few months later my scores did increase. EX went from 838 to 847 and my TU went from 848 to 850. My EQ remained at 850. Fast forward to September 2021, I paid my mast loan payment a few days early and Pen Fed updated, and my scores dropped. EQ dropped to 823, TU dropped to 812 and EX has not updated yet, but the simulators projected a 40 point loss to 807. I knew I was going to get a decrease when my loan was paid off but I didn't think it would be that large. I figured a 15 point drop. Ugh!

[FireMedic1]

Thats life after paying on time and then get the ding once paid. Maybe one day FICO will tweak it. Simulators are for entertainment. The group here are better than any simulator out there. With your scores. No great loss.

[sjt]

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@FireMedic1 wrote:

Thats life after paying on time and then get the ding once paid. Maybe one day FICO will tweak it. Simulators are for entertainment. The group here are better than any simulator out there. With your scores. No great loss.

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My Experian updated and its a 41 point decrease. I know in the big picture its not a big deal, but its still a hard pill to swallow.

[disdreamin]

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@sjt wrote:

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@FireMedic1 wrote:

Thats life after paying on time and then get the ding once paid. Maybe one day FICO will tweak it. Simulators are for entertainment. The group here are better than any simulator out there. With your scores. No great loss.

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My Experian updated and its a 41 point decrease. I know in the big picture its not a big deal, but its still a hard pill to swallow.

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Wow, that's a big drop. My score dropped 22-25 when I paid off my last installment loan and just dropped another 11-18 when my new auto loan reported. All-in, I lost about the same as you did but it was for two events, not just the one. It's frustrating but since I really have no use for any new credit products right now I'm not overly worried. The scores will recover eventually as long as things are paid on time, I guess?

[blossom_rebuilding]

It's a bummer to have lost so many points! I think I only lost something like 20 points when my auto loan reported as closed last year, or maybe even less. The good news is that my scores bounced back within a couple months with continued positive reporting on everything else and reduced cc and personal loan balances, so the effect was short-lived. Good luck!

[barca]

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@blossom_rebuilding wrote:

It's a bummer to have lost so many points! I think I only lost something like 20 points when my auto loan reported as closed last year, or maybe even less. The good news is that my scores bounced back within a couple months with continued positive reporting on everything else and reduced cc and personal loan balances, so the effect was short-lived. Good luck!

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@blossom_rebuilding in your case, you still have another loan reporting. 

Hence, you lost point because  your loan aggregrate increased after you paid off your auto loan

in the case of @sjt he lost big points because he does not have any current installment loan reporting 

[disdreamin]

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@barca wrote:

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@blossom_rebuilding in your case, you still have another loan reporting. 

Hence, you lost point because  your loan aggregrate increased after you paid off your auto loan

in the case of @sjt he lost big points because he does not have any current installment loan reporting 

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My only active installment loan closed toward the beginning of August and cost me around 22-25 points. I find the large drop @sjt experienced to be surprising given that. Is it just a difference in files that cost them more and me less?

[barca]

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@disdreamin wrote:

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@barca wrote:

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@blossom_rebuilding in your case, you still have another loan reporting. 

Hence, you lost point because  your loan aggregrate increased after you paid off your auto loan

in the case of @sjt he lost big points because he does not have any current installment loan reporting 

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My only active installment loan closed toward the beginning of August and cost me around 22-25 points. I find the large drop @sjt experienced to be surprising given that. Is it just a difference in files that cost them more and me less?

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I think that swing  is profile specific. 

Some people have reported huge swings, and some moderate like yours.

I am hoping to pay all my installment loan before year end, I will be happy with your own swing of just (22-25). It will still be above 800

[sjt]

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@disdreamin wrote:

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@barca wrote:

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@blossom_rebuilding in your case, you still have another loan reporting. 

Hence, you lost point because  your loan aggregrate increased after you paid off your auto loan

in the case of @sjt he lost big points because he does not have any current installment loan reporting 

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My only active installment loan closed toward the beginning of August and cost me around 22-25 points. I find the large drop @sjt experienced to be surprising given that. Is it just a difference in files that cost them more and me less?

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Someone mentioned to me that the higher the score, the bigger the drop. So maybe that's why I got a 41 point drop. The drop wasn't so severe on my FICO 9 and Vantage scores. I got a 2 point bump on FICO 2.

[Anonymous]

I don't understand the scores sometimes either. 

I paid off a credit card, which had a balance of $83, and when the balance got updated on Experian to zero, my Experian score dropped by 8 points.  Yes, my score actually dropped by paying off a credit card.