cancel
Showing results for 
Search instead for 
Did you mean: 

Self Lender installment loan reported, score dropped 70 points

delayedsol
Frequent Contributor

Self Lender installment loan reported, score dropped 70 points

😲

 

 

 

 

 

 

 

No really, 😲

 

Is a decrease of 70 points normal for a new loan reporting? Before anyone chides me that I should've set up a 5 year SSL, I read a lot of that information after  I opened this (aka too late). It was relatively easy (aka spontaneous), cost me very little interest, and I thought the array of two secured cards and a small installment loan would help build my payment history away from my AUs. Now I'm feeling stupid.

 

Experian reports a 70 point drop this morning after the loan reported. The cards haven't even started reporting yet. I'm afraid I'm going to hit the 400's if the cards report and the same thing happens. 




Message 1 of 11
10 REPLIES 10
silver_idle
Established Contributor

Re: Self Lender installment loan reported, score dropped 70 points

Are you building or rebuilding? If building, ignore any scores until after 6 months of on time payments since vantage scores are weird at the beginning of building credit and FICO scores are usually not available for the first 6 months of building credit (not sure if that changed though). If rebuilding, are you looking at your FICO or Vantage score? Which credit reporting agency? I can see a new loan reporting dropping the score by maybe 4 to 5 points, maybe even 10 points at the most due to it being a new account, but 70 points seems very off for FICO score, though of course other factors do play into the score as well. I do know vantage scoring model could likely drop that much if your credit profile is new and very thin. Also, If AU is the only accounts on your report, then that could also be why there is a large drop, but you will gain it all back within several months of on time payments, assuming youre building your credit from scratch.

Message 2 of 11
delayedsol
Frequent Contributor

Re: Self Lender installment loan reported, score dropped 70 points


@silver_idle wrote:

Are you building or rebuilding? If building, ignore any scores until after 6 months of on time payments since vantage scores are weird at the beginning of building credit and FICO scores are usually not available for the first 6 months of building credit (not sure if that changed though). If rebuilding, are you looking at your FICO or Vantage score? Which credit reporting agency? I can see a new loan reporting dropping the score by maybe 4 to 5 points, maybe even 10 points at the most due to it being a new account, but 70 points seems very off for FICO score, though of course other factors do play into the score as well. I do know vantage scoring model could likely drop that much if your credit profile is new and very thin. Also, If AU is the only accounts on your report, then that could also be why there is a large drop, but you will gain it all back within several months of on time payments, assuming youre building your credit from scratch.


omgosh I didn't include any of that did I?

 

Fico8, Experian. I have their credit monitoring. I'm rebuilding. My vantage is 701 haha, I wish. 3 AUs reporting, secured cards aren't reporting yet, I was only just approved for them last month.




Message 3 of 11
Pepper220
New Member

Re: Self Lender installment loan reported, score dropped 70 points

I began with self lender program 3 months ago. When it my bureaus, my scores increased drastically. I now have MyFico scores, but did not back then, so can't tell you how much they went up. And they continue to go up everytime I make my payment. And, after 3 months, I qualified for their secured credit card, but they use your previous payments as your deposit, and that's your card limit. Just got that 2 weeks ago. Set up my cell phone bill on it and of course auto pay 2 weeks before the statement date. Way less than 7%. 

I do think your AUs might have something to do with your score drop unless your utilization is drastically outragous.

Message 4 of 11
Janus
Senior Contributor

Re: Self Lender installment loan reported, score dropped 70 points

How much of your SSL have you paid back? You should regain points when it's 80% paid. I also would check UT on those AU accounts.

70 point loss seems extreme for a loan reporting.






Message 5 of 11
delayedsol
Frequent Contributor

Re: Self Lender installment loan reported, score dropped 70 points


@Janus wrote:

How much of your SSL have you paid back? You should regain points when it's 80% paid. I also would check UT on those AU accounts.

70 point loss seems extreme for a loan reporting.


That's what I thought too. 🥺

 

The loan is brand new so no payments have been made on it until the end of the month this month. Utilization on the AUs is the same as it is on the other two reports, reporting at 12% down from 14% so that can't be it.




Message 6 of 11
delayedsol
Frequent Contributor

Re: Self Lender installment loan reported, score dropped 70 points


@Pepper220 wrote:

I began with self lender program 3 months ago. When it my bureaus, my scores increased drastically. I now have MyFico scores, but did not back then, so can't tell you how much they went up. And they continue to go up everytime I make my payment. And, after 3 months, I qualified for their secured credit card, but they use your previous payments as your deposit, and that's your card limit. Just got that 2 weeks ago. Set up my cell phone bill on it and of course auto pay 2 weeks before the statement date. Way less than 7%. 

I do think your AUs might have something to do with your score drop unless your utilization is drastically outragous.


AUs haven't changed much except to go down over the past few months. We had one at high utilization after our last trip to Japan and have been paying it off slowly because there's no interest. I don't think it's the AUs.

 

Also, to clarify, this was a 70 point drop ONLY on EX. TU and EQ stayed the same. The SSL is only reporting to EX right now, hasn't reported to TU or EQ yet (hasn't shown up on them yet).




Message 7 of 11
Janus
Senior Contributor

Re: Self Lender installment loan reported, score dropped 70 points

FYI, you should be able to pay on the loan immediately. Not wait for the end of the month. I've heard of people paying it down the next day after opening. I suspect you'll see some points return once that is done, and it reports on the next cycle.






Message 8 of 11
Birdman7
Super Contributor

Re: Self Lender installment loan reported, score dropped 70 points

80% is not the number, it’s when you pay it below 9.5% B/L you get the big points.

-Scoring wisdom: General Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
CassieCard’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 9 of 11
Questionsc
New Member

Re: Self Lender installment loan reported, score dropped 70 points

Hello. Did your score go back up and if so how long did it take to gain the 70 points back? Did it increase above the 70 points? 

Message 10 of 11
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.