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Well.
That's annoying.
Paid off my personal loan (but still have a mortgage). Other than a whack of recent pulls, thick clean file.
EX FICO 8 dropped from 808 to 795. The other two bureaus really didn't care. (ETA - they in fact subsequently dropped 8 or 9 point).
FICO.
[aside - I paid off the 3-year loan a year early - wasn't gonna pay interest on $400 for a year - fiscal sense > FICO score]
EQ | 841 | 5 INQ (Auto, CC, HELOC, 2 mort) | 7y2m |
EX | 812 | 5 INQ (2 CC, 2 mort, HELoan) | 6y11m |
TU | 829 | 4 INQ (3 CC, 1 mort) | 6y6m |
5/24 | 3/12 | AoYA 0m | AoOA 23y6m | ~3% |
@expatCanuck wrote:Well.
That's annoying.
Paid off my personal loan (but still have a mortgage). Other than a whack of recent pulls, thick clean file.
EX FICO 8 dropped from 808 to 795. The other two bureaus really didn't care.
FICO.
[aside - I paid off the 3-year loan a year early - wasn't gonna pay interest on $400 for a year - fiscal sense > FICO score]
Paying off the loan would not normally cause a score drop, unless the payoff caused your aggregate installment utilization percentage to go over 10% from below 10%.
@SouthJamaica wrote:
@expatCanuck wrote:Well.
That's annoying.
Paid off my personal loan (but still have a mortgage). Other than a whack of recent pulls, thick clean file.
EX FICO 8 dropped from 808 to 795. The other two bureaus really didn't care.
FICO.
[aside - I paid off the 3-year loan a year early - wasn't gonna pay interest on $400 for a year - fiscal sense > FICO score]
Paying off the loan would not normally cause a score drop, unless the payoff caused your aggregate installment utilization percentage to go over 10% from below 10%.
This is what everyone always says but for me, every time I pay off a loan my FICO8 drops 5-10 points and I have an open mortgage that is only 3% paid off that makes the utilization of the smaller loans a non-factor in total loan utilization.
@dragontears wrote:
@SouthJamaica wrote:
@expatCanuck wrote:Well.
That's annoying.
Paid off my personal loan (but still have a mortgage). Other than a whack of recent pulls, thick clean file.
EX FICO 8 dropped from 808 to 795. The other two bureaus really didn't care.
FICO.
[aside - I paid off the 3-year loan a year early - wasn't gonna pay interest on $400 for a year - fiscal sense > FICO score]
Paying off the loan would not normally cause a score drop, unless the payoff caused your aggregate installment utilization percentage to go over 10% from below 10%.
This is what everyone always says but for me, every time I pay off a loan my FICO8 drops 5-10 points and I have an open mortgage that is only 3% paid off that makes the utilization of the smaller loans a non-factor in total loan utilization.
That's my experience as well. I refi'd my mortgage in September. The value of the personal loan was ~3% of my mortgage. Without the loan, aggregate installment util is ~99%; with the loan, ~96%.
Bottom line: my monthly DTI is better (because I no longer have an additional monthly $450 payment), and my FICO score goes down. That logic is whack.
EQ | 841 | 5 INQ (Auto, CC, HELOC, 2 mort) | 7y2m |
EX | 812 | 5 INQ (2 CC, 2 mort, HELoan) | 6y11m |
TU | 829 | 4 INQ (3 CC, 1 mort) | 6y6m |
5/24 | 3/12 | AoYA 0m | AoOA 23y6m | ~3% |
@dragontears wrote:
@SouthJamaica wrote:
@expatCanuck wrote:Well.
That's annoying.
Paid off my personal loan (but still have a mortgage). Other than a whack of recent pulls, thick clean file.
EX FICO 8 dropped from 808 to 795. The other two bureaus really didn't care.
FICO.
[aside - I paid off the 3-year loan a year early - wasn't gonna pay interest on $400 for a year - fiscal sense > FICO score]
Paying off the loan would not normally cause a score drop, unless the payoff caused your aggregate installment utilization percentage to go over 10% from below 10%.
This is what everyone always says but for me, every time I pay off a loan my FICO8 drops 5-10 points and I have an open mortgage that is only 3% paid off that makes the utilization of the smaller loans a non-factor in total loan utilization.
Well I side with the majority on that
Postscript:
Email from Chase about positive changes in my credit history. I log in to Credit Journey.
You paid off your account. Great!
Your total revolving balance has dropped. Terrific!
Oh, and your score is down 16. Thanks for playing our game. Have a nice day.
<smh>
EQ | 841 | 5 INQ (Auto, CC, HELOC, 2 mort) | 7y2m |
EX | 812 | 5 INQ (2 CC, 2 mort, HELoan) | 6y11m |
TU | 829 | 4 INQ (3 CC, 1 mort) | 6y6m |
5/24 | 3/12 | AoYA 0m | AoOA 23y6m | ~3% |
@expatCanuck wrote:Postscript:
Email from Chase about positive changes in my credit history. I log in to Credit Journey.
You paid off your account. Great!
Your total revolving balance has dropped. Terrific!
Oh, and your score is down 16. Thanks for playing our game. Have a nice day.
<smh>
Isn't that a Vantage score, rather than a FICO score?
Indeed it is. But the logic is still whack -- at the upper end, fiscal optimization != FICO optimization.
It reminds me of the BMI measure, which completely ignores the difference between fat and muscle. But that's a discussion for a different forum.
EQ | 841 | 5 INQ (Auto, CC, HELOC, 2 mort) | 7y2m |
EX | 812 | 5 INQ (2 CC, 2 mort, HELoan) | 6y11m |
TU | 829 | 4 INQ (3 CC, 1 mort) | 6y6m |
5/24 | 3/12 | AoYA 0m | AoOA 23y6m | ~3% |
Absent financial catastrophe, my EX FICO 8 Will indeed be back up to 82x before year-end.
I'm just venting because it's fallen below 800 for the first time in years (and I do so like that darker green).
EQ | 841 | 5 INQ (Auto, CC, HELOC, 2 mort) | 7y2m |
EX | 812 | 5 INQ (2 CC, 2 mort, HELoan) | 6y11m |
TU | 829 | 4 INQ (3 CC, 1 mort) | 6y6m |
5/24 | 3/12 | AoYA 0m | AoOA 23y6m | ~3% |
I think there may also be differing score factors for mortgages and other types of loans so you may be getting the no installment penalty (or some other credit mix metric) even with the mortgage open. When I refinanced my student loan a couple of years ago, the previous loan reported closed before the new one reported and I took a bit of a dip that came right back when the new loan reported. Mortgage was the only other type of open installment loan reporting.
More painfully, I am a fellow September refinancer, and it was absolutely crazy to watch no score change at all when my new 100% balance-to-original-amount mortgage reported alongside my 90% balance mortgage. Then a few weeks later the previous mortgage reported as paid and closed and my FICO 8 scores dropped 22-35 points! Add hundreds of thousands in "new" debt, no change. "Pay off" hundreds of thousands of dollars in debt, high risk! The points have been trickling back in as the loan balance has gone under 100%, but it's just one of those crazy head-shaking algorithm moments.