Why the drop in score?!

eagles08 · ‎08-03-2014

So I have been building my credit quite rapidly over the last year. I've gone from 680ish to a 752 on my Discover statement. I had a personal loan that I decided to just pay off. Well, thats the only change I have made and then the next month my score went to 732 on my statement! Why would that make my score drop?! I thought it would help it.

AMEX BCE- $12,600 I Discover IT- $10,000 I Chase Freedom- $7,000 I Citi Double Cash- $3,300 I Best Buy- $2,800 I Bayport CU Visa- $1,000

pizzadude · ‎08-03-2014

Moving to understanding FICO scoring

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

taxi818 · ‎08-04-2014

It's simple. Nothing to do with payoff. Same happened to me. It's the credit mix thing. Losing points cause loan is closed. Now you only have credit cards on report. But 20 points is a lot. I lost about 15

Revelate · ‎08-04-2014

@taxi818 wrote:
It's simple. Nothing to do with payoff. Same happened to me. It's the credit mix thing. Losing points cause loan is closed. Now you only have credit cards on report. But 20 points is a lot. I lost about 15

Not certain yet if it's a mix of credit, or open credit issue: know FICO 8 likes to see open tradelines, and that might've been tossed into the credit mix, or it might be seperate. Either way, unfortunately paying off a loan if you don't have 2 other open ones appears to be a negative, though I'm guessing by the point value lost, that it was your only one OP?