The score drop occurred when the auto loan reported paid. Auto installments went from 71.5k debt to 41.5k debt.
@SouthJamaica wrote:
@nyuphoto wrote:That's sounds nice on paper but according to Fico scoring 1 installment loan is needed to maximize scores.
You already had 2 before the new loan reported.
My installment loan aggregate utilization changed 3 maybe 4%.
Not especially impactful.
My aggregate revolver utilization is 1%.
Another subject entirely.
Help me understand how 4% change should be a no brainer in dropping double digit points when I replaced a paid off loan with another loan and total aggregate changed a mere 3%.
You yourself said that the new loan had reported but the paid off loan hadn't. So as far as your reports are concerned you now had 3 barely paid off loans instead of 2.
You keep coming back to a 3% change in installment utilization percentage but I don't understand why.
This is not a significant milestone; it is virtually meaningless. And this is not the reason your score went down. It went down because as far as the reported data is concerned, you've taken on more debt.
@SouthJamaica wrote:
@nyuphoto wrote:Hello,
All 3 scores dropped 14-20 points when my auto was paid. However, I still have a mortgage and the NEW auto loan reported to all 3 CRA's BEFORE the trade-in was reported paid off. I understand that if it was my only installment loan I'd take a major hit but that's not the case. Any insight on this?
I don't see the mystery. You went from 2 barely paid off loans to 3 barely paid off loans in your reports. I would expect your credit scores to lose a bit as your debt load was seen to increase.
| AU 
From your original post:
"All 3 scores dropped 14-20 points when my auto was paid. However, I still have a mortgage and the NEW auto loan reported to all 3 CRA's BEFORE the trade-in was reported paid off."
@Anonymous wrote:So your utiization on the original loan was 30/40k, or 75%. That loan went away and was replaced by a loan of 41k/41k or 100% utilization.
Is that correct? If so, that would explain the point drop, imo.
Might be.
We've had some reports of weird scoring at or above 100%, and at the very top of the range might be some rounding weirdness on that front to your point.
There's also AAOA to consider, and while it sure seems like new installment loans don't seem to change age of youngest revolver, that might not be entirely clear here.
Also, grace period on inquiries possible too. There's a bunch of moving parts here I'd really want to see complete before and after as this doesn't sound right in my experience at all with more installment loans than many. Sadly FICO 8 reason codes suck or I'd be looking there too.
