@Kkhalil85 wrote:Hi all,
Few weeks ago I got approved for auto refinance with DCU, I also was able to get about $16K cash out on the car since I owed a lot less than the car value. Total refinance is about $24K. I used that most of that money to payoff my credit cards.
Then this happened ( based on info from myfico 3 bureau score watch) :
EQ increased 5 points after one card balance dropped from $7312 to $1743. Citi TYP CL $14,300.00
EX DROPPED 16 points after the original car loan reported 0 balance
EQ DROPPED 8 points after one credit card dropped from $5224 to $47. AmEx CL $7200.00
My questions are why would my EQ score go down after paying off a CC? and will my scores go back up once the new auto loan reports?
As of this morning 9/17/2014 my scores are as follow:
From myFICO: EQ 705, EX 690, TU 703
From Citi ID: EQ 710, EX 712, TU 713
Thank you all in advance for your help, please feel free to share your opinions and experiences.
My guess is that EQ didn't catch the change to closed on the auto loan, so it's rolling up the closed auto loan (which can be a penalty especially if it was your only installment loan) and the second balance change as one.
If it was your only installment loan (and it may be 2+ for optimal scoring open, we're still working on that), when the new loan reports and ignoring possible AAOA changes, yes your score should recover. If your AAOA changes non-trivially, might not get all the points back.
@Kkhalil85 wrote:Thanks for your input Revelate.
The car loan was my only open intallment loan, i have few student loans that are paid from few years ago.
There was 5 days between the two EQ score drops.
Your post reads:
EQ increase
EX decrease
EQ decrease
Did it happen differently? EQ and EX in my experience tend to update pretty quickly and consistently for my lenders at any rate, though I only recently got the 3 bureau service so I was comparing SW vs. Credit Sesame in monitoring updates which may not be 1:1.
@Kkhalil85 wrote:
@Revelate wrote:
@Kkhalil85 wrote:Thanks for your input Revelate.
The car loan was my only open installment loan, i have few student loans that are paid from few years ago.
There was 5 days between the two EQ score drops.
Your post reads:
EQ increase
EX decrease
EQ decrease
Did it happen differently? EQ and EX in my experience tend to update pretty quickly and consistently for my lenders at any rate, though I only recently got the 3 bureau service so I was comparing SW vs. Credit Sesame in monitoring updates which may not be 1:1.
Based on myFICO SW:
EQ Sep 6, 2 Inquiries from DCU, No score changes. ( only two on file)
EQ Sep 9, 5pt Increase, Balance decrease. (Citi Card)
EX Sep 12, 16pt Decrease, Auto loan shows $0 balance.
EX Sep 17, 3pt Increase, Balance decrease. (AmEx)
EQ Sep 17, 8pt Decrease, Balance decrease. (AmEx)
What doesn't make sense to me is why would my EQ score after my AmEx balance drops?
It dropped you because it didn't alert you that the auto loan was now $0 balance and reported closed. You took the hit of losing the auto loan plus the smaller (or zero) gain from paying down a balance on the Amex all rolled up into one update.
Monitoring services are unfortunately not a precise science, they don't all alert on the same things and as such on a report that's non-trivially busy (yours is) it's sometimes hard to isolate a change. In this case two changes, one positive, one larger negative, got summed into one update and you lost points vs what was individually reported would typically be a positive.