ancienbon

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My fico score dropped by 25 points after paying off a car loan. I thought it would actually go up. but i guess i am no longer a profitable borrower . Stupid
 

confettiflyer

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My fico score dropped by 25 points after paying off a car loan. I thought it would actually go up. but i guess i am no longer a profitable borrower . Stupid
There's no penalty or benefit to paying off an installment trade line -- something else was probably going on. Which FICO version and how does it compare to your other 18 scores?
 
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ancienbon

7+ Year Member
Jul 27, 2010
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There's no penalty or benefit to paying off an installment trade line -- something else was probably going on. Which FICO version and how does it compare to your other 18 scores?
Nothing else is going one. It is the transunion score that went down
 

confettiflyer

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Nothing else is going one. It is the transunion score that went down
Which transunion...FICO 8 or an older version? Or did you use a 3rd party site and use a VantageScore?

Also, is that your only item on your credit report? That's the only thing off the top of my head that I can think of...if you have no other installment loans or debt, it'll look like you have absolutely zero current trade lines.

If you want to send me a deidentified version of your credit report, be glad to look at it. [email protected]
 

zelman

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I think having fewer types of loans can lower your credit. So if you only have student loans now, you're a less responsible borrower than someone who can manage a mortgage, car loan and student loans. Or so the computer thinks...
 

Ackj

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I would guess you have a thin file, meaning not much credit history. You just got rid of one of the few things you had on the file, making it smaller. Best thing to do is probably get some more credit, gradually. Opening a new credit card will likely lower your score in the short term, since your "average account age" will be skewed downward by a zero age account, but after that account stays open, it will help. Opening the new one might also help your utilization, although probably not because I'm assuming you don't carry a balance on credit cards.
 
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ancienbon

7+ Year Member
Jul 27, 2010
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I would guess you have a thin file, meaning not much credit history. You just got rid of one of the few things you had on the file, making it smaller. Best thing to do is probably get some more credit, gradually. Opening a new credit card will likely lower your score in the short term, since your "average account age" will be skewed downward by a zero age account, but after that account stays open, it will help. Opening the new one might also help your utilization, although probably not because I'm assuming you don't carry a balance on credit cards.
I dont think so as my oldest credit card is 12 years. My credit was in the mid 800 until bank of america screwed me. I had automatic payment and they did not debit my account .so i was late. Now i have no credit card debt. I only have students loans with drb as debt
 

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