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@Anonymous wrote:I traded my car in a few weeks that still had a balance on the loan. The trade in value covered the balance and was paid off by the dealer. I was shocked to see after the loan reported as paid in full my scores dropped 14-20 points. Can anyone give me any idea of how long it will take to regain the lost points? I'm now in a 2 year lease with FMC and my previous loan had a few lates early on in the loan term.
Non-trivial change in your installment ratio.
Those points are gone under FICO 8 until you reach one of the breakpoints and depending how that lease is reporting (I've never seen a lease on a credit report but I think it's reported as installment with an original balance but is it the full value for the loan?), either way the first breakpoint is somewhere between 70 and 80%, and then the really pretty breakpoint is around 10% aggregate balance to aggregate original balances.
If it's not reporting as installment, you can get a silly secured loan from Alliant for $500 and simply turning around and paying $480 back and then just kicking a dollar or two to the loan every six months or whatever on the 5 year term and get all your points back within 2 months when it reports.
