Credit score dropped 20 points, but why?

[MadGuyInWisconsin]

Happened to me when I paid off a loan. My score dropped around 30-40 points. Seems counterintuitive, but the credit mix is a factor in your score.

[MadGuyInWisconsin]

Originally Posted by Parnassia

You know what they say about sweating the small stuff...and that it's all small stuff. A 20 point drop in a credit score is definitely small stuff. Think about it. You'll probably live longer. Even if you don't, you'll probably live more during the time you do have .

One would like to think so, but a 20-point drop could drop them from one category to a lower one. If they are looking for a loan or some other kind of credit, it would affect their rate. Best option - -pay off as much of the credit card debt as possible.

[macroy]

Originally Posted by jtab4994

I keep a spreadsheet of my credit scores. Sometime between and September 2 and September 20 both my Experian Vantage 3.0 and TransUnion 4.0 dropped exactly 20 points. FICO 9 also went down but FICO 8 actually went up a few points. I get reports from Chase, Discover, Synchrony, and Wells Fargo.

I've been trying to figure out why the scores went down. We paid off a car loan in June, which I've read can hurt your credit score, counterintuitively, by reducing the "mix" of credit used.

Does it seem reasonable for my scores to drop by 20 points for paying off a car loan? And for it not to hit my score for 3 months? Or should I still be trying to figure out why my scores dropped?

Yes - potentially changing the balance of your loan portfolio with regards to installment vs. revolving? Just a guess as there are always multiple factors at play.

And I agree with others about all the nuances that go into your credit score. Mine actually went up after getting two new credit cards within a month. I'd though it would have dropped due to the hard pulls and additional credit... Sometimes, you just have to throw your hands up...

I used to work for FIs and did a lot of executive planning w/ loan products (albeit I was IT, not lending), and I still don't understand it...

[aslowdodge]

I took on more mortgage debt and doubled my credit card lines. Credit score went up .
It must be some crazy algorithms.

[davebarnes]

Did you floss your teeth?

[galaxyhi]

Originally Posted by jtab4994

I keep a spreadsheet of my credit scores. Sometime between and September 2 and September 20 both my Experian Vantage 3.0 and TransUnion 4.0 dropped exactly 20 points. FICO 9 also went down but FICO 8 actually went up a few points. I get reports from Chase, Discover, Synchrony, and Wells Fargo.

I've been trying to figure out why the scores went down. We paid off a car loan in June, which I've read can hurt your credit score, counterintuitively, by reducing the "mix" of credit used.

Does it seem reasonable for my scores to drop by 20 points for paying off a car loan? And for it not to hit my score for 3 months? Or should I still be trying to figure out why my scores dropped?

Most likely because you paid that off is the reason.

But here are some possibilities:

Your first paragraph may hint at some of the reasons: your credit card "score" on your statement is from those credit card companies.

You might find a difference simply because they may look at just one score rating instead of all three bureaus.
If you've ever looked at all three at the same time on the same day, you might find the three bureaus don't have the exact same score for you.

You also don't know, that they may poll 15 days before your statement and you make a payment.
If card A you've paid, it may be a boost when cards B and C poll, but when you pay card A and B when C polls, it may boost.
Opposite being if you haven't paid A and B when C polls, your score may be down.

Small fluctuations are not to worry about.
A 50 or a 100 drop, yeah you might want to find out why.

And, finally, the system/s are designed, tweaked, upgraded In manners to "keep us guessing".
Parameters may change, what counts in what weighted manned may change.
If we all knew the *magic tricks* they use, we could all operate in such a manner as to easily achieve an 800 score, and know how to keep it there!!
(Then why would we NEED any bureau?

Best

[aslowdodge]

Originally Posted by davebarnes

Did you floss your teeth?

I always floss, but I go in reverse order the other day. Could that be it?

[johngolf]

I just checked mine via Credit Karma. 807 Transunion. 815 Equifax. Says both up 3 points but I do not know why. I have no debt.