*oops* Killed My Score

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Dcyphrz
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*oops* Killed My Score

Postby Dcyphrz » Wed Jan 13, 2016 11:43 pm

Entering 2016 without debt was a concept that turned into a full-blown obsession for me. In late December, after a great deal of struggling and doing without many things, I paid the entire balance owed on my truck (a six year note paid in 8 months). It took a LOT of overtime to make that happen. It didn't occur to me that there would be any sort of negative backlash, least of all from the CRAs. Equifax was the first to update my info .... down 48 points. I expect similar results from EX and TU. It'll take me 2 years to recover from all this prosperity. LOL
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EX 756 - TU 776 - EQ 749


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CarefulBuilder14
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Re: *oops* Killed My Score

Postby CarefulBuilder14 » Thu Jan 14, 2016 1:28 am

The FICO scoring methods treat paid-off installment loans as "old news" very quickly.
Keeping indefinitely: IHG, SchwabPlat, CSP, Discover, Freedom, ED, BCE, Hyatt
May close or PC: Prestige, Arrival, BrooksBros
AA Platinum converting into Costco

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech
Letting new accounts cool off since May

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Vattené
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Re: *oops* Killed My Score

Postby Vattené » Thu Jan 14, 2016 8:32 am

I think it's much better to have debt paid off anyway. A credit score is just a number, and the decrease will probably only "cost" you anything if you are applying for a mortgage soon and are already on the fence on which APR you would be getting. Paying off a six year installment loan in 8 months will save you a lot of interest (assuming it wasn't at 0%). Plus it must feel great!

Congrats on getting it paid off that fast! That is an accomplishment.
-Vattené
FICO-8:
EX - 805 (2/17) | TU - 787 (2/17)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

takeshi
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Re: *oops* Killed My Score

Postby takeshi » Thu Jan 14, 2016 10:04 am

Dcyphrz wrote:I paid the entire balance owed on my truck (a six year note paid in 8 months). It took a LOT of overtime to make that happen. It didn't occur to me that there would be any sort of negative backlash, least of all from the CRAs. Equifax was the first to update my info .... down 48 points. I expect similar results from EX and TU. It'll take me 2 years to recover from all this prosperity. LOL

Are you down to to 741 or down from 741? Regardless, don't just obsess over scores. You overall financial health matters more. Are you intending to apply for anything immediately anyway?

There is a bit of a hit for paying off your only active installment. Are you sure that was the only change?

As far as where the backlash is coming from, FICO scores are Fair Isaac and not a CRA product.

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Dcyphrz
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Re: *oops* Killed My Score

Postby Dcyphrz » Thu Jan 14, 2016 6:22 pm

takeshi wrote:Are you down to to 741 or down from 741?

Down to 741. Citi is showing a 789 but I dunno which model they give away (I assume either 8 or bank card 8). FICO Score 8 from MyFICO shows a 741 EQ at the moment. I suppose a few points off is possible if Citi is using a different FICO model.

takeshi wrote:Are you intending to apply for anything immediately anyway?

Nah, was sorta looking at another card but it's just boredom.

takeshi wrote:Are you sure that was the only change?

Absolutely sure. I routinely show zero balances all the way down my account list. I have my card use down to a fairly rigid system. I slip up and print a $40 balance occasionally but it's rare. The only changes would be another month of account age and a $7800 installment loan balance going to zero.
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EX 756 - TU 776 - EQ 749

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Dcyphrz
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Re: *oops* Killed My Score

Postby Dcyphrz » Thu Jan 14, 2016 6:32 pm

Vattené wrote:I think it's much better to have debt paid off anyway. A credit score is just a number, and the decrease will probably only "cost" you anything if you are applying for a mortgage soon and are already on the fence on which APR you would be getting. Paying off a six year installment loan in 8 months will save you a lot of interest (assuming it wasn't at 0%). Plus it must feel great!

Congrats on getting it paid off that fast! That is an accomplishment.

Thank you! I worked a ton of hours to pull that off. It's a relief being rid of the pressure. :)

GM Financial came in at 4.05% (the loan duration didn't effect the rate) which cost me $276.79 over 8 months. I was playing around with extra monthly payments at first then her father said I should try principal only payments so I did that for a few weeks. My next payment was due in October of 2016 when I paid it off.

I haven't had a brand new truck since 1994 and it got repossessed. LOL This was a much better experience. :)
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EX 756 - TU 776 - EQ 749

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Vattené
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Re: *oops* Killed My Score

Postby Vattené » Thu Jan 14, 2016 8:01 pm

I got my first new car in 2014. I won't be paying it off anywhere near as early as you, but I'm hoping to have it paid 15 months early.

It sucks to have your score drop by that much (and especially because it's punishing you for doing something in your best financial interest), but if you are down to 741 with no immediate credit needs you shouldn't have a problem getting whatever credit you want at good terms.
-Vattené
FICO-8:
EX - 805 (2/17) | TU - 787 (2/17)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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Dcyphrz
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Re: *oops* Killed My Score

Postby Dcyphrz » Thu Jan 14, 2016 10:22 pm

Vattené wrote:I got my first new car in 2014.

How long did you shop before you finally pulled the trigger on a new vehicle? I'd wanted one for about 3 years. Guess I finally thought I could afford it. New vehicle loan interest rates are pretty cheap nowadays. I was surprised.
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EX 756 - TU 776 - EQ 749

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Vattené
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Re: *oops* Killed My Score

Postby Vattené » Fri Jan 15, 2016 1:57 pm

We only shopped for a few weeks. We intended on only starting to look around and not buying anything for a few months, but that didn't happen. We found both a car and a salesman we loved (and we were going to be moving soon), so we bought a lot earlier than we originally planned. Wasn't an impulse buy, though. I still love the car. (My wife and I were also both driving the old beaters we had in college, it was May, and the idea of going through another summer without A/C in her car helped goose us.)
-Vattené
FICO-8:
EX - 805 (2/17) | TU - 787 (2/17)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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Dcyphrz
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Joined: Sun Jan 03, 2016 2:57 pm

Re: *oops* Killed My Score

Postby Dcyphrz » Fri Jan 15, 2016 11:34 pm

Vattené wrote: it was May, and the idea of going through another summer without A/C in her car helped goose us.)

Last week of April for me. LOL Sure is a fun time of year to have a new vehicle.

Several years ago I went without air in a Yukon (was too broke to fix it). That went on for probably 3 years. I know the discomfort you speak of.
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EX 756 - TU 776 - EQ 749



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