Why did I lose 14 points from this?

[masscredit]

I'm trying to figure out why my EQ08 score just lost 14 points.  Below is a screen shot of the newly reported description that shows that the account is closed or paid. It has a zero balance. It's had a zero balance since it's last activity in January of '08. 

[Thomas_Thumb]

Was this an installment loan? If so, was it your only "open" loan? 

An open loan with zero balance may be a score booster for a few reasons:

1) Fico 08 wants to see an open loan and it may not look at loan activity - just that is is not closed. If you now have no open/active loans => score drop.

2) if you have another open/active loan, this other loan would have lowered your aggregate balance to loan ratio due to the zero balance. Now that it is closed, you lose the benefit of the loan amount which causes aggregate B/L to increase. Depending on before/after aggregate B/L a threshold may have been crossed.

3) Really not sure if an inactive account that is subsequently closed will impact score directly. However, it would e a trigger event for a data pull - score update.

If this account was a credit card then the account ststus change may have some temporary affect and the loss in associated credit limit may have increased aggregate CC utilization.

[masscredit]

It was an installment loan for a jet ski. It took it out in 2006 and paid it off at the beginning of 2008. It shouldn't age off until the beginning of 2018. 

I currently have an auto loan (I'll probably always have one ).

[Revelate]

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@masscredit wrote:

It was an installment loan for a jet ski. It took it out in 2006 and paid it off at the beginning of 2008. It shouldn't age off until the beginning of 2018. 

I currently have an auto loan (I'll probably always have one ).

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To expand on what TT suggested explicitly, what was your aggregate installment loan utilization before and after counting only open tradelines?

Credit mix is either seperate or no longer exists as we know it in FICO 8 and later, it's all about open accounts, at pretty utilization metrics for certainly installment and revolving has always worked rather similarly.

[masscredit]

My auto loan is currently reporting at 73% (Started at $24995, reporting $18233). It will be at 69% when it updates and shows my last payment. That will bring it down to about $17200.

I'm looking at Credit Karma now. There were two accounts that updated -

Last Reported Jun 30, 2016
Creditor Name SYNCB/YAMAHA
Account Type Secured Loan
Account Status Closed - Paid and Closed
Opened Date May 15, 2007
Closed Date Apr 01, 2016
Limit --
Term 60 Months
Monthly Payment --
Responsibility Individual Account.
Balance $0
Highest Balance $10,900
Payment Status Current
Worst Payment Status --
Date of Last Payment Nov 01, 2007
Amount Past Due --
Times 30/60/90 Days Late 0/0/0
Remarks --

===================

Last Reported Jun 30, 2016
Creditor Name SYNCB/YAMAHA
Account Type Secured Loan
Account Status Closed - Paid and Closed
Opened Date Apr 14, 2006
Closed Date May 01, 2016
Limit --
Term 60 Months
Monthly Payment --
Responsibility Individual Account.
Balance $0
Highest Balance $11,219
Payment Status Current
Worst Payment Status --
Date of Last Payment Jan 01, 2008
Amount Past Due --
Times 30/60/90 Days Late 0/0/0
Remarks

[Revelate]

 39% -> 73% by napkin math.

May have crossed a threshold actually as the line is somewhere either at 70 or 80% for installment utilization.  14 points seems high on your file for that but maybe.

I'll be very interested to see what your score does when the remaining loan updates to <70% if it doesn't get lost in the balance twiddling you're doing.  Might be something else going on too, your report is kinda busy senor .

[Thomas_Thumb]

It appears the initial jet ski loan amount was $11,219. It appears that your jet ski loan was paid off but somehow remained open until recently

1) Current aggregate installment loan [balance to loan ratio] = ($18,247)/($24,995) = 73%

2) Previous aggregate installment loan [balance to loan ratiop] = ($18,247)/($24,995 + $11,219) = 50.4%

If the above is true, you may have crossed an aggregate balance to loan threshold likely in the 65% to 70% range.

[masscredit]

CK lists those accounts under recently closed. I'm very surprised that they took this long.  I guess this is one of those things that left me thinking "Whoa... what just happened?".

[Revelate]

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@Thomas_Thumb wrote:

It appears the initial jet ski loan amount was $11,219. It appears that your jet ski loan was paid off but somehow remained open until recently

1) Current aggregate installment loan [balance to loan ratio] = ($18,247)/($24,995) = 73%

2) Previous aggregate installment loan [balance to loan ratiop] = ($18,247)/($24,995 + $11,219) = 50.4%

If the above is true, you may have crossed an aggregate balance to loan threshold likely in the 65% to 70% range.

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Apparently two tradelines, double the pleasure double the fun; hence the difference in our calculations but still same threshold analysis.

[Revelate]

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@masscredit wrote:

CK lists those accounts under recently closed. I'm very surprised that they took this long.  I guess this is one of those things that left me thinking "Whoa... what just happened?".

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I'm certain you have non-CK reports somewhere, go look at a couple older ones and see what they were reporting for the loans, or even historical CK ones for that matter.