Score dropped 101 points after closing lease and getting a new lease? **bleep**

[antjones21]

So I recently traded in my lease and got a new lease and my score dropped from 759 to 658. 

I was leasing a 2016 Jeep Grand Cherokee and I had 18 payments left with a balance of $11,340. I turned that lease in and leased a 2019 BMW X4 and the balance is showing as $19,400 on my current report. I've been leasing cars since 2004 and I've never noticed this big of a change when getting out of one lease and getting a new one. What gives?

[Anonymous]

What is the source of your score?  Has the old loan reported closed already?  You said that the new one reported and is showing up on your CR, but didn't specifically say that the old one reported closed yet.

The chances of a FICO score dropping 100+ points from the closure of one installment loan and opening another is slim to none.

When was the last time you opened any account prior to this one, that is, what was your AoYA (which is now 0 months)?

I could see a change in installment loan utilization if it went from ideal [which it wasn't, btw] to maxed out coupled with an AoYA drop from >12 months to 0 months possibly resulting in a 40-45 point FICO drop, say 50 points with an inquiry, but that's about it and that would more or less be the worst case scenario IMO.

[antjones21]

Credit Karma showed it last week, which prompted me to check it on here and that was still 740+. Now today it shows the drop when I log into my Captial One credit card and click on the see my credit score link. The Jeep account closed in February. I opened a new credit card back in December. 

What is AoYa?

[SouthJamaica]

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@antjones21 wrote:

Credit Karma showed it last week, which prompted me to check it on here and that was still 740+. Now today it shows the drop when I log into my Captial One credit card and click on the see my credit score link. The Jeep account closed in February. I opened a new credit card back in December. 

What is AoYa?

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The Capital One score is the same useless score as the Credit Karma score... Vantage 3.0.

Just disregard.

[Zolomon]

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@antjones21 wrote:

Credit Karma showed it last week, which prompted me to check it on here and that was still 740+. Now today it shows the drop when I log into my Captial One credit card and click on the see my credit score link. The Jeep account closed in February. I opened a new credit card back in December. 

What is AoYa?

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Credit Karma and Capital One's Credit Wise program use a Vantage Score. Credit Karma's version of the Vantage Score is highly volitile as it only reflects your two most current years of credit history. Any closures and openings could have big impacts. The good news is, most lenders don't use the Vantage Score for lending purposes.

What you want to know is your FICO score, used by most lenders. You can get that here or through other sources, some even with free trial periods.

AAoA = average age of accounts, which is a factor of your FICO score. The higher your average, the better.

[antjones21]

I just pulled the Equifax report on MyFico and it is 737. Last week Transunion was 742. How would Credit Karma and Capital One have more info than MyFico? I'm super confused. 

[FlaDude]

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@antjones21 wrote:

I just pulled the Equifax report on MyFico and it is 737. Last week Transunion was 742. How would Credit Karma and Capital One have more info than MyFico? I'm super confused. 

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Could you clarify what information you are seeing on CK and CU that are not on MyFico?

[Anonymous]

VS 3.0 and FICO are not at all related.  If you're seeing massive score drops on CK/CO that's fine, as those are VS 3.0 scores that are meaningless.  As long as your FICO scores are staying relatively the same, you have nothing to stress over.  As I stated in my first reply though, depending on how your installment loan utilization changed and what your AoYA was prior to this new loan, you could expect see a FICO score drop.  If you've opened an account within the last year (other than this new loan) and your previous loan wasn't paid down to under 8.9%, which it doesn't sound like it was if you had ~$11k left on it, I wouldn't expect your scores to drop more than maybe 10-15 points.  If you haven't opened an account within the last year, I'd bump that estimate up by 15-20 points and give you a drop estimate of 25-35 points.

[HeavenOhio]

I don't think this was answered. AoYA = age of youngest account.