Score Decreases/Increases when Personal Loan Paid in Full

[Anonymous]

Giving this as a data point to show the various increases/decreases in Experian Fico Scores when paid off one of my personal loans.

Had 2 Personal Loans: 1 @ $18,500.  1 @ $35,000

Last reported amounts on Experian file, still owed $978 on the $18,500 loan (5.29% UTIL) and $30,100 on the $35,000 loan (86% UTIL).  Combined UTIL was 58.09%

Paid off $18,500 loan in full and it reported today. Still owe $30,100 on the $35,000 loan (86% UTIL).  No other changes.

Experian Fico 8:  Decreased from 778 to 769

Experian Fico Mortgage 2: Increased from 741 to 746

Experian Fico Auto 2: Decreased from 733 to 724

Experian Fico Auto 8: Decreased from 765 to 745

Experian Fico Bankcard 2: Increased from 745 to 750

Experian Fico 3: No change

Experian Fico Bankcard 8: Decreased from 794 to 783

Bit of a mixed bag. 

[Anonymous]

Interesting.  Any other report changes when comparing those before/after scores?

And increase from 58% installment loan utilization to 86% utilization overall certainly wouldn't warrant an increase in Fico scores.  The only other factor would be that you now have 1 less account with a balance, which on EX2 I could see resulting in a 5 point bump. 

[Anonymous]

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@Anonymous wrote:

Interesting.  Any other report changes when comparing those before/after scores?

And increase from 58% installment loan utilization to 86% utilization overall certainly wouldn't warrant an increase in Fico scores.  The only other factor would be that you now have 1 less account with a balance, which on EX2 I could see resulting in a 5 point bump. 

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There were no other changes.

I did have a mortgage HP credit check in November 2019. However, when that aged 12 months in November 2020, I saw modest 1 point increases. So, I believe that is accounted for. I also had some credit card HPs that aged 12 months several days ago. But, I already saw the increase in points for those and they were also accounted for. 

The only other HP checks on file are from Feb and June 2020. 

There were no other balance changes. 

[Anonymous]

Understood. 

How many total open accounts did you have originally with your first score pull (revolvers + your 2 loans) and how many of them had non-zero reported balances?  Whatever that number is, you'd naturally subtract 1 from both the numerator and denominator once the loan closed.  What was that percentage both before/after?  It should drop slightly... for example, 3/9 (33%) would move to 2/8 (25%).

[Anonymous]

Yes but how old was the loan you closed and how old is the other existing loan? Also have the revolver:loan metric

[Anonymous]

BM, is there a metric on age of open revolvers?  I always thought that any age-related factor included both open and closed accounts.

[Anonymous]

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@Anonymous wrote:

Understood. 

How many total open accounts did you have originally with your first score pull (revolvers + your 2 loans) and how many of them had non-zero reported balances?  Whatever that number is, you'd naturally subtract 1 from both the numerator and denominator once the loan closed.  What was that percentage both before/after?  It should drop slightly... for example, 3/9 (33%) would move to 2/8 (25%).

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Before the loan was paid off, it was 6 out of 11 (55%).  After, it is 5 out of 10 (50%).

Not sure if this makes any difference, but of those open accounts with balances, i am an Authorized User on 2 of them.  If those cards are excluded from the equation then it would be 4 out of 9 and 3 out of 8.

[Anonymous]

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@Anonymous wrote:
Yes but how old was the loan you closed and how old is the other existing loan? Also have the revolver:loan metric

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The loan that i closed was a 36 month loan, that i closed at 22 months.

The loan that is still open is a 60 month loan, currently at 10 months old. 

[Anonymous]

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@Anonymous wrote:

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Before the loan was paid off, it was 6 out of 11 (55%).  After, it is 5 out of 10 (50%).

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Doesn't seem like a threshold was crossed there.  50% is a well documented number of accounts with a balance threshold, but that means 50% or greater, which both 50% and 55% fall into that same category.

[Anonymous]

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@Anonymous wrote:

BM, is there a metric on age of open revolvers?  I always thought that any age-related factor included both open and closed accounts.

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@Anonymous not that I'm aware of, but there is a metric that measures the oldest open loan.