Refinanced two autos score dropped 17 points

[Bogey1975]

I refinanced a 23k auto from 5% to 1.99 and another 9k from 8% to 1.99. both showed up as paid off yesterday and my score dropped 17pts. The new loans are not listed yet. So I currently show no instalment loans other then two mortgages that were also refinanced. When the two loans are reported will my score drop again? It kind of sucks, I try to take advantage of low interest rates then get penalized. These are fico 8 scores which I'm not worried about right now, currently watching mortgage scores with actually went up.

[Brian_Earl_Spilner]

Yes, you will take additional score hits for adding 2 new installment loans

[SouthJamaica]

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@Bogey1975 wrote:

I refinanced a 23k auto from 5% to 1.99 and another 9k from 8% to 1.99. both showed up as paid off yesterday and my score dropped 17pts. The new loans are not listed yet. So I currently show no instalment loans other then two mortgages that were also refinanced. When the two loans are reported will my score drop again? It kind of sucks, I try to take advantage of low interest rates then get penalized. These are fico 8 scores which I'm not worried about right now, currently watching mortgage scores with actually went up.

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That was a fantastic move; congratulations.

Your FICO 8's may or may not get dinged a bit more, depending on what your aggregate installment utilization is, but who cares? 1.99% is amazing.

Your mortgage scores are unlikely to be affected much, if at all.

[Anonymous]

Tough to say what may happen to your scores with the addition of 2 new accounts without knowing more about your profile.  The thicker your file, the lesser the impact generally speaking.  If you have a thinner file, a couple of new accounts can impact your age of accounts a bit more and thus impact your scores more.