# Paid off my Car...now my Fico Score went down...???



## Snowblind (Apr 14, 2017)

Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
Common sense would tell you that it would go up?
Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the **** is this now?


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## LAuberX (Jun 3, 2014)

I'm not sure which FICO score to believe Chase, Wells Fargo, Navy Federal Credit Union, Citibank or Mint.... all offer me a score each month, none of them agree and they vary by 55 points overall!

Bottom line is 5 or 10 points doesn't matter once you're over 760 you're good!


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## Jay Dean (Apr 3, 2015)

If you aren’t giving money away you aren’t contributing to the economy...you always want to hover above making min payments for a high score but I can’t talk because my credit is shit lol


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## NorCalPhil (Aug 19, 2016)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


Well what is the FICO score? Does it factor in your income level? Nope. Savings? Nope. Net worth? nope. Doesn't even care what your debt-to-income ratio is. It just measures the amount of debt you have, how well you pay it off, and how much of your allotted credit you use. It is simply a measurement of risk to let other lenders know how much interest they can charge you for the stuff you want but can't afford. When you open or close an account, they factor that in negatively because it's changing the equilibrium of your credit picture, and with that, your behavior is not guaranteed to stay the same, so you get dinged for it.

Just ignore it, save, and pay cash. When you don't borrow money from anyone for a few years, your score eventually drops to zero.


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## Snowblind (Apr 14, 2017)

> Bottom line is 5 or 10 points doesn't matter


Bottom line is I paid off the Loan, and the Score went down. Obviously they (The Banks) want you to charge more and keep a balance on their CCards.
That what it comes down to, I think. I'd rather have money in the Bank than a good Credit score.



NorCalPhil said:


> Well what is the FICO score? Does it factor in your income level? Nope. Savings? Nope. Net worth? nope. Doesn't even care what your debt-to-income ratio is. It just measures the amount of debt you have, how well you pay it off, and how much of your allotted credit you use. It is simply a measurement of risk to let other lenders know how much interest they can charge you for the stuff you want but can't afford. When you open or close an account, they factor that in negatively because it's changing the equilibrium of your credit picture, and with that, your behavior is not guaranteed to stay the same, so you get dinged for it.
> 
> Just ignore it, save, and pay cash. When you don't borrow money from anyone for a few years, your score eventually drops to zero.


If I ever wanted to re-finance my Home, a good Fico score will save me tons of money by getting a better Interest rate.


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## Kodyhead (May 26, 2015)

Crying over 5 pts is like complaining about a 4.95 rating and a 4.93 rating who cares


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## NorCalPhil (Aug 19, 2016)

Snowblind said:


> If I ever wanted to re-finance my Home, a good Fico score will save me tons of money by getting a better Interest rate.


True, but there are plenty of underwriters who will give you a better interest rate based on your overall financial picture than just your credit score.


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## Jay Dean (Apr 3, 2015)

Kodyhead said:


> Crying over 5 pts is like complaining about a 4.95 rating and a 4.93 rating who cares


I have a 4.91 after 4 years, this isn't fair and want an answer


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## Snowblind (Apr 14, 2017)

> Crying over 5 pts is like complaining about a 4.95 rating and a 4.93 rating who cares


Obviously you care since you posted.
The Thing is just not fair. You work your @ss off for years, never late for a payment, and you get dinged on your score.

oh, and my Rating is 4.96


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## Jay Dean (Apr 3, 2015)

Snowblind said:


> Obviously you care since you posted.
> The Thing is just not fair. You work your @ss off for years, never late for a payment, and you get dinged on your score.
> 
> oh, and my Rating is 4.96


I would suggest getting a bunch of credit cards and make all the min payments but don't take my suggestion, my credit is terrible but I'm sure people that know credit would advise such things

There is no "fair" here in America only capitalism and playing the game, trust me play their game for a high score


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## NorCalPhil (Aug 19, 2016)

Jay Dean said:


> I would suggest getting a bunch of credit cards and make all the min payments but don't take my suggestion, my credit is terrible but I'm sure people that know credit would advise such things


Insanity.


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## Jay Dean (Apr 3, 2015)

NorCalPhil said:


> Insanity.


Low interest making min payments grants a high score, proven..insanity yes but reality yes as well


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## Eugene73 (Jun 29, 2017)

LAuberX said:


> I'm not sure which FICO score to believe Chase, Wells Fargo, Navy Federal Credit Union, Citibank or Mint.... all offer me a score each month, none of them agree and they vary by 55 points overall!
> 
> Bottom line is 5 or 10 points doesn't matter once you're over 760 you're good!


the only score that matters is the one the bank pulls when you need a loan, the rest are just guesstimates


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## Jay Dean (Apr 3, 2015)

The idea that people think that paying off things is rewarding is unreal, you go against the flow doing that and “give” no reason for a high score lol make min payments at little to no interest and play the game


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## Eugene73 (Jun 29, 2017)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


what kinda car are you ubering with that you paid $638 a month for ($38,280 over 5 years holy yikes) . best is to buy a used car for 2,000 - 3,000


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## NorCalPhil (Aug 19, 2016)

Jay Dean said:


> The idea that people think that paying off things is rewarding is unreal, you go against the flow doing that and "give" no reason for a high score lol make min payments at little to no interest and play the game


The peace of mind that comes with not owing anybody anything far outweighs hoping my fico score will be high enough to so I can borrow money from someone so I can go into debt.

The best thing about cash is everything is negotiable, even the things you think aren't, are.


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## Kodyhead (May 26, 2015)

Snowblind said:


> Obviously you care since you posted.
> The Thing is just not fair. You work your @ss off for years, never late for a payment, and you get dinged on your score.
> 
> oh, and my Rating is 4.96


My point is you shouldnt care about 5 points

Chances are it will be back up in a month or 2 it's not a big deal

It's not going to make a difference of that much to getting another loan


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## goneubering (Aug 17, 2017)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


Banks hate people like you!! The only answer is pile on more debt.


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## Jay Dean (Apr 3, 2015)

NorCalPhil said:


> The peace of mind that comes with not owing anybody anything far outweighs hoping my fico score will be high enough to so I can borrow money from someone so I can go into debt.
> 
> The best thing about cash is everything is negotiable, even the things you think aren't, are.


And in the case of buying a house, you lose with that point

Numbers is all bankers and investors see


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## NorCalPhil (Aug 19, 2016)

Jay Dean said:


> And in the case of buying a house, you lose with that point


Not sure how you come to that conclusion. Show up with cash to buy a house against other offers that require financing or other contingencies, and the cash offer has a great chance of getting accepted even if it is for less than the others.


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## NorCalPhil (Aug 19, 2016)

Jay Dean said:


> LOL
> 
> What movie you been watching dude lol


Life experience I guess. When I sold my last house I took the cash offer that was $15k less than the heavily financed offer that was contingent on them selling their house first. So much could have gone wrong with their offer, the cash price was the best deal.

I watched my neighbor sell his house when some guy knocked on the door and offered him cash to sell. It wasn't even on the market. Cash moves the world homie.

Laugh all you want and worship at the altar of the great FICO score. You'll make the retirement of the financiers that much more enjoyable.


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## Jay Dean (Apr 3, 2015)

NorCalPhil said:


> Life experience I guess. When I sold my last house I took the cash offer that was $15k less than the heavily financed offer that was contingent on them selling their house first. So much could have gone wrong with their offer, the cash price was the best deal.
> 
> I watched my neighbor sell his house when some guy knocked on the door and offered him cash to sell. It wasn't even on the market. Cash moves the world homie.
> 
> Laugh all you want and worship at the altar of the great FICO score. You'll make the retirement of the financiers that much more enjoyable.


Just catching my breath so how do you go about a cash offer on a 20yr loan, suitcase, envelope? lol


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## Fuzzyelvis (Dec 7, 2014)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


 Wait until you pay off your house. It will go down even more. Apparently not having a mortgage is not a good thing for credit. I've come to the conclusion that they don't really want people who don't owe anything to have good credit because they don't make any money off them.


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## Jay Dean (Apr 3, 2015)

Fuzzyelvis said:


> Wait until you pay off your house. It will go down even more. Apparently not having a mortgage is not a good thing for credit. I've come to the conclusion that they don't really want people who don't owe anything to have good credit because they don't make any money off them.


Can I get a amen to min payments ?


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## Fuzzyelvis (Dec 7, 2014)

Jay Dean said:


> I would suggest getting a bunch of credit cards and make all the min payments but don't take my suggestion, my credit is terrible but I'm sure people that know credit would advise such things
> 
> There is no "fair" here in America only capitalism and playing the game, trust me play their game for a high score


No because every inquiry dings you.


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## chitownXdriver (Dec 24, 2014)

I bought my house with 17 Bitcoins when the price of Bitcoin was hovering around 17K, I'm glad I spent those Bitcoins wisely then cuz look at the price now 
Disclaimer: I didn't really do what I said I did, but it definitely would have been worth it.


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## Jay Dean (Apr 3, 2015)

Fuzzyelvis said:


> No because every inquiry dings you.


Temporarily...you don't inquire unless you know you will be granted, long term in little to zero interest the score sores


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## NorCalPhil (Aug 19, 2016)

Fuzzyelvis said:


> Wait until you pay off your house. It will go down even more. Apparently not having a mortgage is not a good thing for credit. I've come to the conclusion that they don't really want people who don't owe anything to have good credit because they don't make any money off them.


That's exactly right, and people are crazy enough want to pay for the privilege to borrow more money. If you don't have a mortgage or any other payments, you pretty much don't need to borrow money cause you're sitting on bags of money. Who would have thunk it.



Jay Dean said:


> Just catching my breath so how do you go about a cash offer on a 20yr loan, suitcase, envelope? lol


Wire transfer genius. And if it's a cash offer, there is no 2o year term. I'm starting to get the feeling you have no idea what you're talking about


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## Fuzzyelvis (Dec 7, 2014)

Jay Dean said:


> Temporarily...you don't inquire unless you know you will be granted, long term in little to zero interest the score sores


Temporarily meaning for 2 years.


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## Jay Dean (Apr 3, 2015)

There are people that think cash is the answer there is people that know how to play the credit game, it depends on where you are in life financially, showing up with cash will likely bring bad results, playing the game for a high credit score will not only get you a house but will grant you access to ANYTHING in the future


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## Snowblind (Apr 14, 2017)

Eugene73 said:


> what kinda car are you ubering with that you paid $638 a month for ($38,280 over 5 years holy yikes) . best is to buy a used car for 2,000 - 3,000


These two:










And I only do this Part Time, during the Day I run my own Business.



Snowblind said:


> These two:
> 
> 
> 
> ...


Oh, and I put down $12.000.00 on that Car. (Black one)


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## Jay Dean (Apr 3, 2015)

Fuzzyelvis said:


> Temporarily meaning for 2 years.


Here's the fun part, creditors actually see inquiries vs anything else, they aren't stupid, it's like asking if we know what a turn lane is while driving


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## LAuberX (Jun 3, 2014)

it just came to me your score went down... it's because you have fewer accounts. they like lots of accounts with high limits, that you don't use that are very old to establish a high credit score.

no missed payments no inquiries no judgements all the common sense stuff matters also.

so you paid off the car now you have one less account and that will affect your score.

I remodeled a rental house with credit cards and in the last year I've paid off $40,000 and watched what it does to my credit score on a monthly basis. I have $16,000 left and it's all at 3% or less interest rate.

Not what Dave Ramsey would recommend but I am in great shape financially.


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## NorCalPhil (Aug 19, 2016)

Jay Dean said:


> There are people that think cash is the answer there is people that know how to play the credit game, it depends on where you are in life financially, showing up with cash will likely bring bad results, playing the game for a high credit score will not only get you a house but will grant you access to ANYTHING in the future


This is where I LOL and walk away. Enjoy your FICO score, may it bring you everything you ever want and need!


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## American Uber Girl (Nov 16, 2017)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


Car loans are considered secure loans vs credit cards which are unsecured. So when you made the final payment it closed the loan.


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## Fozzie (Aug 11, 2018)

Jay Dean said:


> I would suggest getting a bunch of credit cards and make all the min payments but don't take my suggestion, my credit is terrible but I'm sure people that know credit would advise such things


Don't do this. All you'll do is significantly lower your average account age and your credit score will plummet. Depending on credit profile, make sure your debt to income ratio is low and ensure a good mix of credit types... mortgage, auto, revolving and stuff like personal bank loans. Keep all utilization under 10% and things will be fine.


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## NorCalPhil (Aug 19, 2016)

I love paying interest. Everything's fine. I'm made out of money!


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## Snowblind (Apr 14, 2017)

Fozzie said:


> Don't do this. All you'll do is significantly lower your average account age and your credit score will plummet. Depending on credit profile, make sure your debt to income ratio is low and ensure a good mix of credit types... mortgage, auto, revolving and stuff like personal bank loans. Keep all utilization under 10% and things will be fine.


I won't .

Problem is, I own my own Business. I can only produce a "stated Income".
And they can do whatever they like to with this.
I cannot display "all of my Income" so re-financing will be difficult.
But, I'll manage.

Thanks for all the Input, Uber/Lyft Drivers and Ladies.
Well appreciated.
oh, wait....FEATURED?

Rofl.


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## SEAL Team 5 (Dec 19, 2015)

Jay Dean said:


> I can't talk because my credit is shit lol


Then at least you don't have to worry about identity theft.


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## Snowblind (Apr 14, 2017)

I think LAuberX nailed it. Not enough rotating Accounts.
I think I will buy me a second House, fix it up and rent it out.
Then, I'll get me one of those Mercedes GLE AMG Coupe SUV's.
Wish me luck.




Jay Dean said:


> Can I get a amen to min payments ?


Nope.


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## Older Chauffeur (Oct 16, 2014)

NorCalPhil said:


> The peace of mind that comes with not owing anybody anything far outweighs hoping my fico score will be high enough to so I can borrow money from someone so I can go into debt.
> 
> The best thing about cash is everything is negotiable, even the things you think aren't, are.


Exactly. For example, my wife has had some expensive dental work over the years, and I have asked for and received a discount for paying cash upfront.
My own FICO score is always in the seven fifties, but comes with a comment that I've been dinged a few points because I have no car payment or other consumer loans. I don't have a mortgage payment, but I don't think they count that. I have three credit cards that are paid in full each month, along with a couple of gas cards I rarely use. When I closed a couple of credit card accounts a few years ago, my score showed hardly a bump, maybe because the accounts had been inactive for a long time.


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## SEAL Team 5 (Dec 19, 2015)

Snowblind said:


> I think I will buy me a second House, fix it up and rent it out.
> Then, I'll get me one of those Mercedes GLE AMG Coupe SUV's.


That's the ticket. Use taxable rental income to purchase luxury items just like they did back in the early 2000's. I guess history does repeat itself.


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## Older Chauffeur (Oct 16, 2014)

SEAL Team 5 said:


> That's the ticket. Use taxable rental income to purchase luxury items just like they did back in the early 2000's. I guess history does repeat itself.


Is that tax write off for business people leasing high dollar SUVs still in effect?


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## SEAL Team 5 (Dec 19, 2015)

Older Chauffeur said:


> Is that tax write off for business people leasing high dollar SUVs still in effect?


Of course it is. Did you forget who has control of our Legislature?


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## LAuberX (Jun 3, 2014)

Snowblind said:


> I think LAuberX nailed it. Not enough rotating Accounts.
> I think I will buy me a second House, fix it up and rent it out.
> Then, I'll get me one of those Mercedes GLE AMG Coupe SUV's.
> Wish me luck.


Not so fast... NEW accounts hurt your credit score. Ask existing credit cards to raise your limit, this will improve your score. And don't close any old accounts, keep 'em active.

OLD accounts with HIGH limits and NO money owed is the key to a high score, the credit score simulator Chase has online shows mine will be back to it's old 829 once I have paid off my remaining debt, or roughly February.

I honestly don't think I will be borrowing money against the cards again, come March, the money will start piling up in savings where it can pay future unexpected expenses.

No MBZ in my future, I drive a paid for 2002 Honda. It runs great.


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## SEAL Team 5 (Dec 19, 2015)

LAuberX said:


> No MBZ in my future, I drive a paid for 2002 Honda. It runs great.


A 17 year old car for Uber? What do the pax say when they have to hand crank the window down? JK


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## William Fenton (Jan 1, 2018)

The account shows as closed, one less creditor reporting so your score goes down. Had you paid off the loan with a lump sum it would have shown a decrease in your debt but you made a $600 payment that is all you debt was reduced.
Don't worry about it your score will go up in 90 days.


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## Sophistiq8ted (Aug 12, 2018)

Your profile is also less diverse without an auto loan on it. Therefore your score goes down. I have a better credit score than my Mom, but also have 2 cars, a house and credit cards on mine. Each plays a part.


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## nickd8775 (Jul 12, 2015)

Apply for one credit card with a high limit and barely use it.


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## Oberyn Martell (Apr 27, 2018)

Seeking financial advice from UP.net is like seeking diet advice from the regulars at Golden Corral.


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## henrygates (Mar 29, 2018)

A couple people have already said it but I'll repeat it. It went down because you closed the loan. It went down 5 points which is inconsequential. Your score will vary month to month based on a lot of factors, and each reporting system uses them differently, and then there are OTHER scores that some companies use that calculate even differently.

Point is, there's an expected variance in the score. As long as you are generally in the "excellent" bracket, it doesn't affect your ability to acquire credit at the best terms available.

As an aside, I almost fainted at the car loan amount. I know it's common nowadays, but man cars have gotten expensive. I have been considering replacing my 18 year old car with a newer one, and I could easily afford the $200 car payment but...I just can't get myself to do it until the old car has a serious problem.


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## lyftandseparate (May 25, 2018)

I played a personal banker in a past life at a larger regional bank in the area. Anything over 720 (depends on the credit bureau it is pulled from) got all the bells and whistles and lowest possible rates. One less account, one less payment, 5 less pts. I think you are ahead.


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## BikingBob (May 29, 2018)

Concerned by some of the answers on here haha. But a few hit the nail on the head. It went down because you closed a loan that was in good financial standing for 3-5 years (your loan). Realistically the number went down further than 5 points, but because your debt to income ratio changed the number swung up too. As the poster above me mentioned don't sweat 5 points. If you're over 750 the world is your oyster. 

You should only make an inquiry into your credit every 6 months. Anything more than that and your score will drop significantly. It tells lenders that you're looking for a cash grab and it will penalize you.

If you want to change your number or keep it at something. Don't open a ton of credit cards and make minimum payments. Get a simple credit card with no frills and ask for the minimum amount ($500 usually). Each month get a single tank of gas on it. If your tank of gas is $60 - pay $59. "Borrow" $1. Rinse and repeat. I keep it in my glove box and use it on the first weekend of the month for that tank of gas.

I use a credit card that I got as a college student like this every month. It has a 15 year history with me and is in 'good financial' standing. So when my credit is run they see this stupid, worthless card and see that I've made a payment every month for 15 years without issue.


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## Seamus (Jun 21, 2018)

LAuberX said:


> Not so fast... NEW accounts hurt your credit score. Ask existing credit cards to raise your limit, this will improve your score. And don't close any old accounts, keep 'em active.
> 
> OLD accounts with HIGH limits and NO money owed is the key to a high score, the credit score simulator Chase has online shows mine will be back to it's old 829 once I have paid off my remaining debt, or roughly February.
> 
> ...


100% agree. About 20 years ago I got tired of paying high interest on credit card bills. I paid them off and then made the mistake of closing them so I wouldn't ever run them up again. Learned the hard way after my FICO score dropped like a rock! I unknowingly killed my debt to available credit ratio. Lesson learned.


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## JC17 (Oct 16, 2017)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


Debt free is the way to go don't worry bout your credit score listen to Dave Ramsey on YouTube or 680 am he is awesome helped me get out of debt I suggest you listen to him he explains credit score more than I can I was like 20000 in debt now I am not I pay cash for all my purchases it takes time to save sometimes but it's the best feeling good luck and Uber on my friend


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## Snowblind (Apr 14, 2017)

Thanks, Guys and Gals for the comments. At the moment, I'm enjoying some Time without the Car payment.
From now on, those $640 are going into my Savings account. Every month. You'll never know.

I haven't been driving for Uber or Lyft in a month, since my Computer business is doing very well right now.
I only drive when waiting for parts or when there is a slow down. I drive for Fun, whenever I want.
Select/Lux only.
Happy Friday, all.


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## Grahamcracker (Nov 2, 2016)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


Mine did as well after I paid off my car. I had 828 and it dropped to 795. I was very upset with that as well. After some research I learned that to have impeccable credit you need debt like credit cards that you use, car payments that are made on time or a mortgage that isn't behind. It shows lenders that you can manage your bills. It's annoying, I know.

So, in order to keep from paying interest on my credit cards, I use it to buy gas and food through out the month keeping it at a minimum. Then I pay the whole balance off when it's due.

I just bought a new Suburu Forester like yesterday. In order to get the 0% APR, I had to make payments of $471 per month for 36 months with a 10k down payment. In 3 years that saved me over $800 in interest! Small but worth it IMO.

Now for mortgage, I have not figured out how to avoid paying interest but I used the VA loan for 3 years interest free. If you know a way to pay 0% APR on mortgage besides paying cash (lol), please tell me.


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## brentb31 (May 23, 2018)

Jay Dean said:


> And in the case of buying a house, you lose with that point
> 
> Numbers is all bankers and investors see


Being debt free is great. Work hard, invest wisely, and the money will take care of itself. I paid cash for my house, it was a repo that just went on the market. Paid cash for cars. Now I don't have a house or car note and I max out my kid's 529 each year.

All the money I save in no interest payments, mortgage and car notes adds up hugely. We live on a fixed budget each week and if we need more money, I will just drive a bit extra that week. Have 8 months living expenses liquid I can go get at anytime if need be for big expenses.

We have one CC that we use for hotels, rental cars, etc but pay it off each month in full.



NorCalPhil said:


> Not sure how you come to that conclusion. Show up with cash to buy a house against other offers that require financing or other contingencies, and the cash offer has a great chance of getting accepted even if it is for less than the others.


This is what we did. Walked in with a literal suitcase of cash and bank sold for 20% less then asking price.

Needed new sewer line put in, offered guy cash knocked 2K off the bill. Roof was 1500 less then quote when offered to pay in cash.


----------



## BikingBob (May 29, 2018)

Grahamcracker said:


> Now for mortgage, I have not figured out how to avoid paying interest but I used the VA loan for 3 years interest free. If you know a way to pay 0% APR on mortgage besides paying cash (lol), please tell me.


I don't know about that, but avoiding PMI when that 36 month period expires you can try a piggyback loan if the rates are better. Credit unions treat you better and you can say it's for things like renovations/home improvement.

But depending on when you purchased and your score you might only be paying 3.5% on your mortgage in the 2016 years.


----------



## tohunt4me (Nov 23, 2015)

Snowblind said:


> Obviously you care since you posted.
> The Thing is just not fair. You work your @ss off for years, never late for a payment, and you get dinged on your score.
> 
> oh, and my Rating is 4.96


Credit HISTORY
is more important than credit Score.

You can have great FICO score with No History and be declined.


----------



## KMANDERSON (Jul 19, 2015)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


638 dollars a month?damn!!!!



Jay Dean said:


> Low interest makings grants a high score, proven..insanity yes but reality yes as well


I got a 730 credit and I got four max out and only make the minimum payment.The secret it not to care and pay the minimum payment


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## Uberk5487 (Apr 4, 2017)

Its like paying off your credit card and closing them....credit is built by recurring payments not paying things off and closing them....but your credit should bounce back in a few weeks....


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## chitownXdriver (Dec 24, 2014)

brentb31 said:


> Being debt free is great. Work hard, invest wisely, and the money will take care of itself. I paid cash for my house, it was a repo that just went on the market. Paid cash for cars. Now I don't have a house or car note and I max out my kid's 529 each year.
> 
> All the money I save in no interest payments, mortgage and car notes adds up hugely. We live on a fixed budget each week and if we need more money, I will just drive a bit extra that week. Have 8 months living expenses liquid I can go get at anytime if need be for big expenses.
> 
> ...


Sounds like an awesome plan, now if I just had that much cash lying around...


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## Benjamin M (Jul 17, 2018)

First, remember that your credit score is like a roller coaster. Up and down for various reasons. 

Have you run a detailed credit report? That might indicate the reason - and make sure that you run all of the major companies. Also, don't be afraid to call the one that has the worst rating and ask what's up. In my experience, they've been happy to help (just be polite).

An account being closed, such as your auto loan, can actually reduce your rating. I learned this after paying off a credit card with a high available balance and canceling it. Having open lines of credit that are unused shows a credit history and can actually increase your score.

Keep your chin up. If you weren't late on anything, this will pass.


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## ubercrashdummy (Mar 5, 2015)

Snowblind said:


> it went down 5 points.


I experienced a drop when paying off my car as well.

You know, not having an open mortgage can also lower your score. So pay off that house!

If you need to lower your score further, pay off and close all credit cards. No open credit card = lower score.

If you want to manipulate your score higher, acquire insane available credit or just get a good credit education, visit the fine people at creditboards in their credit forum.


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## Firefly333 (Jan 24, 2017)

FICO is a racket created by the banking industry to control consumers. As long as you have no judgments, liens, charge-offs, or bankruptcies, there's no need to worry about your credit score.

Your score went down only because you have one less active account in good standing. Nevertheless, you are financially better off - you are no longer giving your hard earned money to the bank.

BTW, slavery still exists. Only now, the banks are the slavemasters and the debtors are the slaves.


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## UberLaLa (Sep 6, 2015)

DTI (debt to income) ratio is the dynamic at play...


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## tohunt4me (Nov 23, 2015)

What about
Boats ?
Motorhomes ?
A Harley ?
Vacation House ?
A small plane ?


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## Snowblind (Apr 14, 2017)

After doing some Research, these are the Reasons my Score fell:
1. Lack of recent revolving account information
2. Lack of recent bank/national revolving information
3. Lack of recent installment loan information
And, as UberLaLa already mentioned, Dept to Income ratio.

As being self employed, I can only produce a "stated Income" more or less.
It sux, but it is what it is.

When I came here in 1987, Sears wouldn't even sell me a Fridge because I had no Credit history.
I couldn't even rent a Video tape, because I had no Credit Card for the Security.
Matter of fact, B of A wouldn't even let me have a Bank account, because I didn't have 3 ID's.
Wells Fargo did.


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## nj2bos (Mar 18, 2018)

Your FICO can drop in this case because your Average Age of Accounts (AAoA) could have gone down when the loan showed as Paid in Full.

If your loan was a 5yr loan, the account age for that account was (obviously) 5 years at this point assuming you didn't pay it off early. However if in the past 5 years you opened up ANY new accounts (credit card, personal loan, mortgage, loan consolidation, another auto loan) then closing out this auto loan WILL impact you a little bit since you are getting rid of one of your older accounts, thus lowering your AAoA.

Your AAoA calculates all of your accounts' ages (date of opening until today), and averages them out to find one number that is the overall average age of all accounts on your credit report (installment loans, revolving accounts, mortgages, etc). This factors into your FICO. Higher AAoA typically translates into a higher FICO. So by nature any of your accounts closing that are not your youngest account will do this.

No big deal, it will pick up again slowly. Nature of the game.

This is also why if you have a credit card that you've had for a long time but no longer use, DON'T close it out. The only exception is if there is an annual fee. Doing this with an old credit card lowers not only your AAoA but also your available revolving credit.


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## Jo3030 (Jan 2, 2016)

This makes sense in a way...
So...
What you OWED (let's say the last 600 bucks) of a very large loan $36,000 made it look like your utilization was low.
So when you paid it off, the loan is no longer factored in your overall debt.
So your credit takes a hit because only owing 1.6% of your car at that moment was HELPING you..
Without that and with the account closed, it doesn't help you.

Also, in regards to having an account that is 5 years old 'close' and 'end', affects your age of accounts.

5 pts in FICO is miniscule tho.


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## Snowblind (Apr 14, 2017)

ubercrashdummy said:


> I experienced a drop when paying off my car as well.
> 
> You know, not having an open mortgage can also lower your score. So pay off that house!


Pay off that House? Are you kidding me? We're in California here, and I still owe $280K on that Home.
I bought it twice, actually.
Once in 1992 for $220K, then again in 2007 to get The Ex out of the Paperwork.
In 2007, the House was worth $675K, and she got half of that.


----------



## Snowblind (Apr 14, 2017)

Oberyn Martell said:


> Seeking financial advice from UP.net is like seeking diet advice from the regulars at Golden Corral.


I'm not seeking financial advice, I was just venting.


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## JohnnyRotten69 (Mar 5, 2017)

Get an account on credit karma. Mine fluctuates weekly. 690 to 720 depending on any credit card balances. Under 30% in balances is 720. Drops from there.


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## Snowblind (Apr 14, 2017)

JohnnyRotten69 said:


> Get an account on credit karma. Mine fluctuates weekly. 690 to 720 depending on any credit card balances. Under 30% in balances is 720. Drops from there.


Are you serious?
I'd rather clean a gas station toilet with my toothbrush.


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## Cableguynoe (Feb 14, 2017)

Snowblind said:


> Are you serious?
> I'd rather clean a gas station toilet with my toothbrush.


Sounds like you've been waiting for a chance to use that line and I don't think you picked the right moment.


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## Snowblind (Apr 14, 2017)

Cableguynoe said:


> Sounds like you've been waiting for a chance to use that line and I don't think you picked the right moment.


Oh, I got more where that one came from. And your "_I'll try being nicer if you try being smarter"_ was also one of mine.


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## Scott.Sul (Sep 9, 2015)

Snowblind said:


> I'm not seeking financial advice, I was just venting.


Serves you right. Venting is not allowed. LOL.

What gets me is all the expert advice posted on here which contradicts each other. 
My score just dropped 7 points and is now into the 820's... and I have no idea why. Haven't seen it that low in fifteen years. No recent loans paid off, no new credit cards, no new cars, same job, same mortgage.

My best guess is they finally figured out how to identify who is an Uber driver and are now calculating that into the score. 
"Whoa! This guy is an Uber driver. He must be some kind of a moron!"


----------



## Cableguynoe (Feb 14, 2017)

Snowblind said:


> Oh, I got more where that one came from. And your "_I'll try being nicer if you try being smarter"_ was also one of mine.


You wish! I made that one up!!



Scott.Sul said:


> What gets me is all the expert advice posted on here which contradicts each other.


I don't think anyone is claiming to be an expert.

We've all had experiences with credit. 
Everyone's experience is different, good or bad.

People are just sharing what they've learned or think they've learned.


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## KK2929 (Feb 9, 2017)

Jay Dean said:


> If you aren't giving money away you aren't contributing to the economy...you always want to hover above making min payments for a high score but I can't talk because my credit is shit lol


-----

Not correct !!



Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


--------------------

Join Credit Kama ( free )
They can answer your question. Also, ask for a copy of your credit history from all three companies and make certain all the info is correct. I am guessing that there is a lag time for score changes. I know it is not instant. You said a couple of months ago - maybe it takes longer. Also, I have found that there often is a huge difference ( like 15 points) in the numbers, depending on what source you are using.



Jay Dean said:


> If you aren't giving money away you aren't contributing to the economy...you always want to hover above making min payments for a high score but I can't talk because my credit is shit lol


------

Jay Dean - don't become a Financial Adviser. You will starve because you will have zero business.


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## UberLaLa (Sep 6, 2015)

Put my MKZ on credit last year...6% car loan. FICO went up 30 Points : //


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## Snowblind (Apr 14, 2017)

UberLaLa said:


> Put my MKZ on credit last year...6% car loan. FICO went up 30 Points : //


My Loan was a 3.5%, not too shabby, but then that was in 2013.


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## 155839 (Jul 28, 2018)

NorCalPhil said:


> I watched my neighbor sell his house when some guy knocked on the door and offered him cash to sell. It wasn't even on the market. Cash moves the world homie.


The seller gets cash regardless of how the buyer comes up with the money. The seller isn't funding the mortgage.


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## Fritz Duval (Feb 4, 2017)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


Its routine for a score to drop when a bill is payed of. It will rebound in 30 days... Nice job Bro...


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## uberdriverfornow (Jan 10, 2016)

part of your score is having a mix of different types of credit accounts, it's possible that not having an installment loan anymore brought it down because you just don't have the same credit mix anymore

also, different scores for different companies have different algorithms so you can't say the same thing works across all scores

fico is the official one used by lenders


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## NorCalPhil (Aug 19, 2016)

gaijinpen said:


> The seller gets cash regardless of how the buyer comes up with the money. The seller isn't funding the mortgage.


Yeah of course, but in these cases there isn't a mortgage. That's the entire point.


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## 155839 (Jul 28, 2018)

NorCalPhil said:


> Yeah of course, but in these cases there isn't a mortgage. That's the entire point.


Why would the seller give a **** if the buyer had a mortgage? He gets the same amount regardless of how the buyer gets the money.


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## NorCalPhil (Aug 19, 2016)

gaijinpen said:


> Why would the seller give a &%[email protected]!* if the buyer had a mortgage? He gets the same amount regardless of how the buyer gets the money.


Lots of reasons, but primarily cash transactions are much quicker/smoother than others. Closing time goes up whenever there are mortgages or other issues to work through. Just because a buyer prequalifies for a certain loan and loan amount doesn't automatically mean they are going to get that mortgage when it comes time to sign.

In this case, the seller actually made out great as he didn't need to get a realtor involved either. Saving that % fee on a $1.85m transaction is pretty sweet.


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## 155839 (Jul 28, 2018)

NorCalPhil said:


> Lots of reasons, but primarily cash transactions are much quicker/smoother than others. Closing time goes up whenever there are mortgages or other issues to work through. Just because a buyer prequalifies for a certain loan and loan amount doesn't automatically mean they are going to get that mortgage when it comes time to sign.
> 
> In this case, the seller actually made out great as he didn't need to get a realtor involved either. Saving that % fee on a $1.85m transaction is pretty sweet.


That time factor would only matter if he was planning on selling to begin with, _and _was in a hurry to sell. The offer was unsolicited, so the time factor really isn't an issue. OTOH, the speed of the process could actually be a nuisance for someone who wasn't prepared to sell their house and move their belongings.

As for buying with cash - That is only advantageous for flippers/investors. If one was planning on making it their primary residence, buying with cash would be foolish.

Saving on that RE commission was sweet. But, didn't have anything to do with how the buyer funded.


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## NorCalPhil (Aug 19, 2016)

gaijinpen said:


> If one was planning on making it their primary residence, buying with cash would be foolish.


Why?



gaijinpen said:


> OTOH, the speed of the process could actually be a nuisance for someone who wasn't prepared to sell their house and move their belongings.


True. In this case, they ended up renting the house back at a pretty sweet rate for a few months while they figured out what they were going to do. The buyer bought it as an investment, so time after the sale wasn't an issue for him.


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## Snowblind (Apr 14, 2017)




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## Juggalo9er (Dec 7, 2017)

Score went down likely due to no fixed loan....a month or two it will go back up.....


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## Tripwire (Oct 28, 2015)

NorCalPhil said:


> Well what is the FICO score? Does it factor in your income level? Nope. Savings? Nope. Net worth? nope. Doesn't even care what your debt-to-income ratio is. It just measures the amount of debt you have, how well you pay it off, and how much of your allotted credit you use. It is simply a measurement of risk to let other lenders know how much interest they can charge you for the stuff you want but can't afford. When you open or close an account, they factor that in negatively because it's changing the equilibrium of your credit picture, and with that, your behavior is not guaranteed to stay the same, so you get dinged for it.
> 
> Just ignore it, save, and pay cash. When you don't borrow money from anyone for a few years, your score eventually drops to zero.


This post gave everyone AIDS, thanks.


----------



## Juggalo9er (Dec 7, 2017)

Plot twist.... google manufactured spending on credit cards and enjoy


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## Kodyhead (May 26, 2015)

Tripwire said:


> This post gave everyone AIDS, thanks.


I already have aids, can anyone trade for hepatitis F so I can have a complete hepatitis set?


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## jfinks (Nov 24, 2016)

Snowblind said:


> Bottom line is I paid off the Loan, and the Score went down. Obviously they (The Banks) want you to charge more and keep a balance on their CCards.
> That what it comes down to, I think. I'd rather have money in the Bank than a good Credit score.
> 
> If I ever wanted to re-finance my Home, a good Fico score will save me tons of money by getting a better Interest rate.


Interest rate doesn't make that huge of difference. When I just bought a house a few months ago I considered paying a point (about $2000) to get a half percent lower rate. Over a 15 year mortgage it came out to saving $5000. Not really a lot to write home about for that lower rate. One can invest that $2000 not paid in a pretty conservative fund and double that 2 times to about $8000 in 15 years.


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## Juggalo9er (Dec 7, 2017)

Kodyhead said:


> I already have aids, can anyone trade for hepatitis F so I can have a complete hepatitis set?


I see your aids and raise you herpasyphylis 7


----------



## Tripwire (Oct 28, 2015)

Juggalo9er said:


> I see your aids and raise you herpasyphylis 7


That's nothing next to the Super Space AIDS that the Kardashian's brought into the world


----------



## Kodyhead (May 26, 2015)

Juggalo9er said:


> I see your aids and raise you herpasyphylis 7


Wow that sounds like I would save space since I have separate herpes and syphilis and then I can have something cool like flesh eating stuff



Tripwire said:


> That's nothing next to the Super Space AIDS that the Kardashian's brought into the world


I think it's better for the environment if you get aids locally, smaller carbon foot print

I think we took a wrong turn a few posts back


----------



## Bob fox (May 18, 2016)

This is the most useful tool in the world for understanding and building your credit in my opinion. It's helped me tremendously.

https://creditwise.capitalone.com


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## Juggalo9er (Dec 7, 2017)

Bob fox said:


> This is the most useful tool in the world for understanding and building your credit in my opinion. It's helped me tremendously.
> 
> https://creditwise.capitalone.com


Except for the fact that it provides a vantage score, which few if any kresse lenders use


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## NoPooPool (Aug 18, 2017)

NorCalPhil said:


> Not sure how you come to that conclusion. Show up with cash to buy a house against other offers that require financing or other contingencies, and the cash offer has a great chance of getting accepted even if it is for less than the others.


How do you show up with the pile of cash to buy a house, and do you bring it to the initial showing with the real estate agent or to the perspective purchase house, if it is for sale by owner? Do I bring it in a huge suitcase on wheels, or would a wheelbarrow work better?



Jay Dean said:


> Can I get a amen to min payments ?


No, because with minimum payments, you are paying a ton of interest of a longer period of time.


----------



## NoPooPool (Aug 18, 2017)

SEAL Team 5 said:


> A 17 year old car for Uber? What do the pax say when they have to hand crank the window down? JK


Just an FYI, a 2002 Accord LX or EX came with power windows.


----------



## SEAL Team 5 (Dec 19, 2015)

NoPooPool said:


> Just an FYI, a 2002 Accord LX or EX came with power windows.


Just an FYI, JK after the post means just kidding. My very first car was a '76 Buick Regal and it had power windows.


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## Koolbreze (Feb 13, 2017)

Your score will drop if you don't keep some open credit going.


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## NoPooPool (Aug 18, 2017)

SEAL Team 5 said:


> Just an FYI, JK after the post means just kidding. My very first car was a '76 Buick Regal and it had power windows.


Ohhh, you internet stalwart! JK..... I don't know all that fancy internet/forum lingo too well. I thought JK was somebody's initials that got inadvertently posted into the thread. I love life, as long as I keep learning something new everyday.


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## FXService (Oct 8, 2017)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


Congratulations on the loan payoff! I'm jealous! I still have just under 6 years to go. I bought in March though Haha. But it could be a number of reasons:

1.) Has your pay off been reported yet? And if so has it been reported to all 3 credit bureaus? The bureau providing your score might not be the same one your bank reports to. So it could take time.

2.) Have you had any hard pulls recently? Again within the last 60 days?

3.) Sometimes when people pay off an installment they get a little frivolous and FICO algorithms take that into consideration

4.) Your yearly income might have temporarily dipped compared to your local average. (Not saying your income has changed at all, just the average salaries have gone up around)

5.) Have opened any new accounts recently? (IE in store financing for a TV or furniture?)

6.) Maybe your two revolving accounts went about 30% on the reporting date. (So it doesn't matter if you pay the cards off every month, what matters is the balance on the reporting date. All lenders report once every 30 days. Your CC statements should have their reporting date.)

7.) A number of things of can affect credit score that you don't even realize such as a new job, divorce (lowers your credit score a good bit), marriage (raises your credit score), etc

So while this list isn't complete, I'm hoping it can give you an idea of what maybe happened. Also give it another 60 days to see what happens. I mean are you planning on opening a new account or refinancing your home in the next 60 days? If not don't worry about. Also Auto lenders use a separate FICO (FICO Auto Score) score that while based on your general credit is more heavily based previous auto loans.

Also you have a mortgage, and only 2 CCs (revolving accounts). So you only have 3 accounts which are in good standing. If you had a few more accounts your credit score would eventually increase. However, opening up some more accounts would negatively impact your credit for at least a year (probably more) as the *average* *age* of your accounts has significantly decreased. And with you just having a mortgage and 2 CCs your credit score will stagnate.

~FXService


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## Juggalo9er (Dec 7, 2017)

Best way to see score jump
Pay off all cards aside from 1, leave a $1 balance on it.... enjoy increase


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## Snowblind (Apr 14, 2017)

FXService said:


> Congratulations on the loan payoff! I'm jealous! I still have just under 6 years to go. I bought in March though Haha. But it could be a number of reasons:
> 
> 1.) Has your pay off been reported yet? And if so has it been reported to all 3 credit bureaus? The bureau providing your score might not be the same one your bank reports to. So it could take time.
> I guess, otherwise I wouldn't have gone down? I paid it off in May.
> ...


Thank you for your comment. Read my answers inside your Statement.


----------



## Retired Senior (Sep 12, 2016)

NorCalPhil said:


> Well what is the FICO score? Does it factor in your income level? Nope. Savings? Nope. Net worth? nope. Doesn't even care what your debt-to-income ratio is. It just measures the amount of debt you have, how well you pay it off, and how much of your allotted credit you use. It is simply a measurement of risk to let other lenders know how much interest they can charge you for the stuff you want but can't afford. When you open or close an account, they factor that in negatively because it's changing the equilibrium of your credit picture, and with that, your behavior is not guaranteed to stay the same, so you get dinged for it.
> 
> Just ignore it, save, and pay cash. When you don't borrow money from anyone for a few years, your score eventually drops to zero.


My youngest brother works in the financial service field in Atlanta Georgia. (He's the one most responsible for getting me to drive for Uber.) He said that it does not help to build a good credit rating by paying off each charge and bill entirely every month. The system is rigged so that your credit rating gets a bigger boost by you making the minimal payment on time every month.

The Hyundai salesman who was involved with my recent purchase of a 2013 Tucson basically told me the same thing. I could put $5,000 down or $7,000 down but the xtra $2000 would not really save me any money. The car company made it's biggest profit on the highly structured car loans they talked distraught buyers into signing. The profit on the cars was marginal, almost what a department store would call a "loss leader".

I too will be paying for a 5 year period.... and if I want to pay it off more quickly they will still collect every penny that I agreed to.

At the risk of being jeered, or called various names, I would like to mention that there is a conversation going on in conservative and libertarian groups that there is an actual "war on cash", that many governments, including our own - the USA - would like to do away with cash altogether. Apparently the law requiring savings banks to report any deposits of more than $10,000 at any one time was not really about putting the screws on narco traffickers, but more about native consumers and their own dollar reserves.

I am not quite sure how this ties in with our FICO reporting and similar stuff... but I sense that there is a connection.... (go ahead, I am laughing myself at my choice of words). You might find it interesting to read this article (from some godforsaken think tank that I had never heard of before,,,, I blame Laura Ingraham for my hearing about this..... up to 10 hrs a day with the radio on can expose you to some strange and radical ideas....)

https://www.csmonitor.com/Business/The-Circle-Bastiat/2012/0329/The-US-government-s-war-on-cash



NorCalPhil said:


> Not sure how you come to that conclusion. Show up with cash to buy a house against other offers that require financing or other contingencies, and the cash offer has a great chance of getting accepted even if it is for less than the others.


I would guess that that is because the Seller of the house wants his/her cash ASAP, where-as a financial institution would like to see interest paid on a 15 - 30 year home loan.


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## RickGnVa (Feb 12, 2018)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


Your credit/FICO score is an indication of how much you play kissy face with the banks. Stop playing kissy face, you score goes down. Simply put, if you put down the Xbox remote in the credit game your score will go down. As others have said, don't worry about it and pay cash. A zero (non determinable ) score is a beautiful thing.


----------



## Danny3xd (Nov 7, 2016)

Just a thought, I would check with my bank and/or things like credit karma any time my scores go down. 

I recently found 3 errors and after fixing, my score went up 47 points. Literally putting me in a better bracket. All things being the same, I don't see how it would go down. Even that small amount. But 5 points can make a huge difference depending on where you are, to begin with.


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## Jefferson DDBY (Jul 27, 2018)

Snowblind said:


> View attachment 252795


Well 30 seconds of research wouod have told you why your score went down and would have saved us all from this thread.


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## itsablackmarket (May 12, 2015)

Credit scores and modern banking in general is a blatant scam. If anyone actually takes them seriously, that's sad. They couldn't scream RIGGED WORTHLESS SCAM any louder.


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## sellkatsell44 (Oct 25, 2015)

itsablackmarket said:


> Credit scores and modern banking in general is a blatant scam. If anyone actually takes them seriously, that's sad. They couldn't scream RIGGED WORTHLESS SCAM any louder.


Really.
Do tell.

Facts please.

I can't be bothered with opinions that lead to scams.


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## FXService (Oct 8, 2017)

RickGnVa said:


> Your credit/FICO score is an indication of how much you play kissy face with the banks. Stop playing kissy face, you score goes down. Simply put, if you put down the Xbox remote in the credit game your score will go down. As others have said, don't worry about it and pay cash. A zero (non determinable ) score is a beautiful thing.


When you have a 798-803 credit score like the OP, paying cash for a depreciating asset is one of the dumbest things you can do. You're talking about 3% or lower interest rates, give or take half a point. Assuming the final financed amount was $35,500. In 60 months using traditional investment tools with 5%*(1)* interest compounding 1x annually, $35,500 cash comes out to $45,308 over 5 years. So if we take $35,500 and assume a 3.1% interest over 60 months that comes out to $38,368 as total cost of the loan, which if notice is $639/mo very close to his payment. (Loan amount may be different based on his interest rate.) So if we subtract $38,368 from $45,308 we get a net +$6,940 over 5 years or roughly an additional $115.67/mo.*(2)*

*(1) *realistically you could expect between 8-10% right now, but I wanted to keep the math simple. 
*(2)* this simple example doesnt take into account continued deposits into hypothetical investment account(s)


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## itsablackmarket (May 12, 2015)

sellkatsell44 said:


> Really.
> Do tell.
> 
> Facts please.
> ...


I really don't care if you believe me or not. Go learn about how the world works. It isn't even 1% what it's made out to be. No, I'm not going to write how the world works on a forum, or anywhere else for that matter. You either know or you don't.


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## Juggalo9er (Dec 7, 2017)

FXService said:


> When you have a 798-803 credit score like the OP, paying cash for a depreciating asset is one of the dumbest things you can do. You're talking about 3% or lower interest rates, give or take half a point. Assuming the final financed amount was $35,500. In 60 months using traditional investment tools with 5%*(1)* interest compounding 1x annually, $35,500 cash comes out to $45,308 over 5 years. So if we take $35,500 and assume a 3.1% interest over 60 months that comes out to $38,368 as total cost of the loan, which if notice is $639/mo very close to his payment. (Loan amount may be different based on his interest rate.) So if we subtract $38,368 from $45,308 we get a net +$6,940 over 5 years or roughly an additional $115.67/mo.*(2)*
> 
> *(1) *realistically you could expect between 8-10% right now, but I wanted to keep the math simple.
> *(2)* this simple example doesnt take into account continued deposits into hypothetical investment account(s)


I just got 0% on a new ford I bought... considering inflation, it's a negative interest rate


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## Christinebitg (Jun 29, 2018)

Grahamcracker said:


> the 0% APR


The car dealers know exactly how much that buy-down is worth, and you should too.

Calculate the time value of that financing deal, and make them a cash offer for the car, after subtracting that amount.

I get that not everyone can pay cash for a car. But if you can, it's the way to go.

Christine



NorCalPhil said:


> the seller actually made out great as he didn't need to get a realtor involved either.


Nothing wrong with doing that if you do it right. However...

My Significant Other is an attorney and sees the deals that get screwed up. If you're going to sell real estate without a Realtor, get a real estate attorney to make sure the paperwork is done right.

Anything else is gambling with big bucks.

Christine



Retired Senior said:


> I would guess that that is because the Seller of the house wants his/her cash ASAP


The reason is two fold.

1. For an offer that's contingent on getting a mortgage, there's a risk that the buyer can't get one. When that happens, the seller is back to square one and has wasted time and money waiting.

2. If the agreement is contingent on the sale of the buyer's previous house, then the sale doesn't go through until the previous closing takes place. And if there are multiple contingent deals stacked up, it becomes a sort of daisy chain. Then one closes snd a whole string of closings can take place.

If the term "daisy chain" has negative associations in your mind, you'd be right in this case.

So a cash deal is *always* more favorable to a seller than a sale with a mortgage, even though the seller gets paid by the title company that closes the sale.

(Yes, I do have a real estate sales license here in Texas.)

C



NoPooPool said:


> How do you show up with the pile of cash to buy a house, and do you bring it to the initial showing with the real estate agent or to the perspective purchase house, if it is for sale by owner? D


You make an offer to buy the house in the same way as if you were going to get a mortgage. But the offer does not include a contingency for getting a mortgage.

When you're getting ready for closing, you tell your bank to wire the money to the title company, with the information about which house closing it's for.

Christine


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## MadePenniesToday (Feb 24, 2017)

The points you gained by making payments for 5 years make the 5 points lost seem like nothing. I get the OP though. The pride lost dipping below 800 lol.
I wouldn't keep much of a balance on credit cards if any at all each month, like the smart people on here have said. Big gains come when your credit limit is increased. Don't take advice from people with horrible credit.
When the recession hit, I was in financial trouble with hours cut at work along with dumb decisions. After 4 years of working on my credit, I now have excellent credit and gained over 300 points. It all started with a secured loan, after, $200-$300 unsecured credit cards. Research what works for you.


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## bsliv (Mar 1, 2016)

798 rating? Darn. I'm only at 792. OP, watch out, I'm shooting for ya! If you can suffer through another short term decrease in score, apply for another card. A part of the FICO score is based on the total available credit. It may take a few months but your score should jump up again. Don't apply for multiple cards, though. Each application will be a hard pull on your credit history. A lot of hard pulls in a short period of time is a negative.

I play the credit game. I have 12 credit cards and 1 auto loan, no mortgage. I have a speadsheet that tracks my usage for the past 9 years and my FICO for the past 5 years. I have about $70k in available credit. My plan is to have all the cards maxed out when I die. 

FXService gave a great example of opportunity costs and explained how and why using a low interest rate loan can make one some money.

Juggalo9er, milk that 0% loan for as long as you can. You're right, it effectively is a negative rate loan due to inflation. And if you invest it like FXService recommends, you'll make out very well.



Christinebitg said:


> I do have a real estate sales license here in Texas.


Realtors, ugh.  Appraisers are the real masters of the real estate industry.  Sure wish we got 3% of the sale price, though.



Christinebitg said:


> Calculate the time value of that financing deal, and make them a cash offer for the car, after subtracting that amount.


A lot of used car dealers make bucks off of loans but do new car dealers make money too? When I was car shopping I had prearranged financing through my bank. But the dealer offered a $750 rebate to use their financing. Their financing was through my bank too! It was 1% higher but running the math, the $750 applied as a down payment was worth more than the 1%, especially when considering the opportunity costs.


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## NorCalPhil (Aug 19, 2016)

bsliv said:


> My plan is to have all the cards maxed out when I die.


Enjoy your stay in hell


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## UberPrius11 (Jun 23, 2016)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


Not sure if this was covered since there are 7 pages of responses but I have worked in credit all my life and this is what I can tell you.

1. Paying off the account may or may not be the specific reason for the drop-but your score can be hurt by closing an installment account since you no longer have that payment history account moving forward, but this is a low probability
2. The credit pull after the account being closed would cost about 5 points since it is an inquiry (most likely scenario)
3. modulation of balances on your revolving accounts (credit cards that can be charged and paid off over and over) you want about 25% utilization. So for a 1000 credit limit you want a balance but less than 250. You get hit at 25% again at 50% and a big hit at 100+%

5 points is not a big deal unless you are at what is called a tier. If you are applying for credit ask the salesperson or Underwriter what their tiers are for credit. For me they break down like this 750+, 720-749, 680-720, <680

Hope that helps!


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## sellkatsell44 (Oct 25, 2015)

itsablackmarket said:


> I really don't care if you believe me or not. Go learn about how the world works. It isn't even 1% what it's made out to be. No, I'm not going to write how the world works on a forum, or anywhere else for that matter. You either know or you don't.


This just sounds like a cop out for what you believe you know rather than what's actually factual.


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## pismire (May 2, 2017)

Snowblind said:


> Thanks, Guys and Gals for the comments. At the moment, I'm enjoying some Time without the Car payment.
> From now on, those $640 are going into my Savings account. Every month. You'll never know.
> 
> I haven't been driving for Uber or Lyft in a month, since my Computer business is doing very well right now.
> ...


How do you get away with doing select in either of those cars? They both look too old to qualify. When did uber allow 10 year old cars on select?


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## Snowblind (Apr 14, 2017)

pismire said:


> How do you get away with doing select in either of those cars? They both look too old to qualify. When did uber allow 10 year old cars on select?


Well, the black one is a 2011, and Uber qualified it for Select, Lyft got it as "Lux Black".
I don't think it looks old:










The Silver one (2008) is a Lyft Lux only, not an Uber Vehicle. Both Vehicles are exceptional clean.

bad pic of the Silver one, but...


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## pismire (May 2, 2017)

Snowblind said:


> Well, the black one is a 2011, and Uber qualified it for Select, Lyft got it as "Lux Black".
> I don't think it looks old:
> 
> View attachment 253268
> ...


I had that same car, same year. Only difference was I had the ML63 AMG package. I liked the car, but, buying it ended up being a huge burden and I wish everyday I had the $30k in cash back that was spent on the outrageous repair bills.


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## pomegranite112 (May 14, 2017)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


FICO score is not a debt/income ratio. A credit score is centered around "CAN THIS GUY MAKE PAYMENTS" like physically is he able to do it. It's not a responsibility meter. Its a "HOW LONG HAS HE MADE PMTS FOR AND HAS HE MADE EVERY ONE". You can cheat the system by using a credit card then paying it offbefore the months over

If you close a credit card account it goes down. Isnt that funny


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## itsablackmarket (May 12, 2015)

sellkatsell44 said:


> This just sounds like a cop out for what you believe you know rather than what's actually factual.


Of course it sounds like that to you.


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## UberPrius11 (Jun 23, 2016)

pomegranite112 said:


> FICO score is not a debt/income ratio. A credit score is centered around "CAN THIS GUY MAKE PAYMENTS" like physically is he able to do it. It's not a responsibility meter. Its a "HOW LONG HAS HE MADE PMTS FOR AND HAS HE MADE EVERY ONE". You can cheat the system by using a credit card then paying it offbefore the months over
> 
> If you close a credit card account it goes down. Isnt that funny


It goes down for two reasons, the first is that you have less overall available credit to calculate and second you lose the activity time as well. The amount it will cost you depends on the age and payment history as well as balance history of the account. If it was your oldest account you could see a drop of over 100 points!!!! That's an extreme case where someone has very limited credit but that is the "logic" they use. I can tell you from speaking directly with reps from two of the three bureaus that even they don't understand it completely.


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## Danny3xd (Nov 7, 2016)

MadePenniesToday said:


> The points you gained by making payments for 5 years make the 5 points lost seem like nothing. I get the OP though. The pride lost dipping below 800 lol.
> I wouldn't keep much of a balance on credit cards if any at all each month, like the smart people on here have said. Big gains come when your credit limit is increased. _*Don't take advice from people with horrible credit.*_
> When the recession hit, I was in financial trouble with hours cut at work along with dumb decisions. After 4 years of working on my credit, I now have excellent credit and gained over 300 points. It all started with a secured loan, after, $200-$300 unsecured credit cards. Research what works for you.


That's great advice, MPT


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## sellkatsell44 (Oct 25, 2015)

I'm going to type this out because I'm under the weather and in no mood to study.

Overall-you shouldn't care about what your credit score is to the point. Obviously if it goes up and down a few (+20, -20) in the long run it doesn't matter as long as you practice good credit habits (e.g paying on time). *Credit is a living breathing thing that changes every month. It'll fluctuate. But it's also not the only thing creditors look at when they're deciding if they should lend to you, and if so how much, and at what rate.*

If you plan on taking out a loan in the near future then yes, credit score matters more as depending on your score, they'll give you a certain rate.

But that's not the only thing they look at. I knew someone who had a credit card but not a long history, with a score in the 720s. He got denied for an auto loan. Why? Not enough credit history, no other credit history other than that one credit card.

You can have a "horrible" credit of 650 and still manage to get an approval of an auto loan because 1) you've established a history of paying ontime for the last ten years. 2) you have an income to support the additional credit/loan you're requesting and 3) you have an established relationship with the lender.

I knew this lady who was obsessed with getting 800+ for credit score. Why, I don't know. She wasn't looking to refi. She already had her house, car and credit card with 40k limit. But she was obsessed with her score and figured high utilization was keeping it from going over the 800. She would put everything on the one card she had and than she would pay it off in full. It basically reported her utilization as 80-90%.

She ended up opening another credit card so her revolving credit line doubled and she was more careful to keep the % around 30 or under.


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## KenLV (Jun 23, 2017)

NorCalPhil said:


> Well what is the FICO score? Does it factor in your income level? Nope. Savings? Nope. Net worth? nope.


There are lots of things it affects besides loans.
For example, FICO scores affect your insurance rates.


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## NorCalPhil (Aug 19, 2016)

KenLV said:


> There are lots of things it affects besides loans.
> For example, FICO scores affect your insurance rates.


Depends where you live. Thats been banned here in California like everything else.


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## Pusher (Mar 7, 2017)

The Borrower is Slave to the lender - always remember that.


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## Christinebitg (Jun 29, 2018)

bsliv said:


> Sure wish we got 3% of the sale price, though.


There's a lot of work that goes into getting that 3%.

And it's only if the sale closes. My sponsoring broker found a great buyer for a property, but the seller backed out for stupid reasons. And then re-listed it with someone else and sold it. No commission on that one.

Christine


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## Danny3xd (Nov 7, 2016)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


Snow, did ya ever find out why or did I miss it?


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## Snowblind (Apr 14, 2017)

Danny3xd said:


> Snow, did ya ever find out why or did I miss it?


Danny3xd , it all looks like the score went down because one of the accounts ( Car payment) got closed because I paid it off.


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## Danny3xd (Nov 7, 2016)

That is just crazy, Snow. I agree with ya.

I happened to talk to my bank/credit union and asked. They didn't really answer. "Well, many factors can affect....." LoL. Canned answers everywhere I go.


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## wb6vpm (Mar 27, 2016)

Not reading through 7 pages to see if this is said or not, but the reason your credit score went down is most likely due to your average account age being recalculated now that your 5 year loan is now closed. It probably lowered your average age of open accounts. In case that doesn’t make sense think of it this way:

Loan 1: 5 years open
Loan 2: 2 years open
Average open age is 3.5 years, 

Now let’s say you open a new loan:

1: 5
2: 2
3: 0
Now your average age of credit is 2.33 years old

This works in the same way if you close an older credit line:

1: 5(closed)
2: 2
3: 0
Now your average age of open credit is only 1 year old, since line 1 doesn’t count anymore.


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## freddieman (Oct 24, 2016)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


5 points is nothing. It will fluctuate.


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## LA_Native (Apr 17, 2017)

Got a used car loan at 2.2% Feb 2017. I had around a 750 FICA, and no idea how I got it that high, given my credit history.

I was told that working at my PT job for the last two decades really helped and so too did having my Discover card since '99.


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## rosco78 (Mar 5, 2018)

Jay Dean said:


> I have a 4.91 after 4 years, this isn't fair and want an answer


4.98 after 2,339 Uber rides........who got me beat? haha


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## RideshareGentrification (Apr 10, 2018)

Snowblind said:


> Bottom line is I paid off the Loan, and the Score went down. Obviously they (The Banks) want you to charge more and keep a balance on their CCards.
> That what it comes down to, I think. I'd rather have money in the Bank than a good Credit score.
> 
> If I ever wanted to re-finance my Home, a good Fico score will save me tons of money by getting a better Interest rate.


Your score will always drop after paying a loan off especially if you don't have another auto loan.


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## DJWolford (Aug 6, 2017)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


8 Pages in i assume someone has given you the correct answer. but just in case allow me.

a large impact to your credit score is your Available Credit --- to Open Credit Ratio
around 10% is like the ideal

so if you have a car loan and you owe $1000 on a $20,000 loan that will look amazing on your credit and will give you a high score (just on that one by itself)

when you pay off that it's no longer an open line of credit so that goes away.
for instance if you have that $1000/$20,000 line and you have a credit card with a $500 balance on a $1000 card, your credit used ratio would go from like 6% to 50% --- and that would make your credit score down significantly

common sense when you understand how it all works -- no conspiracy theories


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## RaleighNick (Feb 18, 2017)

DJWolford said:


> 8 Pages in i assume someone has given you the correct answer. but just in case allow me.
> 
> a large impact to your credit score is your Available Credit --- to Open Credit Ratio
> around 10% is like the ideal
> ...


As far as I understand it this is mostly correct, but from what I can tell the credit bureaus make a distinction between revolving (credit card) and other (things like auto and home loans) types of debt. Having less revolving debt will raise your score, but paying off a simple interest (like an auto) loan early will lower it slightly. There are other things that matter I am sure like debt/income ratio. But one of the sad facts is that they don't have to be up front about how exactly they calculate things so there is always a degree of uncertainty.


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## DJWolford (Aug 6, 2017)

RaleighNick said:


> As far as I understand it this is mostly correct, but from what I can tell the credit bureaus make a distinction between revolving (credit card) and other (things like auto and home loans) types of debt. Having less revolving debt will raise your score, but paying off a simple interest (like an auto) loan early will lower it slightly. There are other things that matter I am sure like debt/income ratio. But one of the sad facts is that they don't have to be up front about how exactly they calculate things so there is always a degree of uncertainty.


Well sure, but i know for a fact the Credit Used / Available Credit ratio is a massive factor to your score -- along with payment history.

my first job, wasn't paid for 6 weeks, racked up $5000 in debt and my credit went to shit. few years later i paid it all off (approx $8000)

After that and a year of making payments etc -- keeping that ratio around 10% -- my score was 720++

few years later lost a job and racked up a lot of debt on my CC's and that ratio was around 90% (still making payments no derogatory accounts) -- that made my score go down to like 550

when i got the chance to pay those down again it went back up to 730++

speaking from experience on how all this works, i can say for a fact that is what happened with this guy.


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## Tom Harding (Sep 26, 2016)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


Part of your FICO score is the available credit your have. While your car was financed the amount financed less payments was part of your available credit. Now that the account is closed, your available credit went down by the amount the car was financed for. That reduces your FICO score.


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## RaleighNick (Feb 18, 2017)

Tom Harding said:


> Part of your FICO score is the available credit your have. While your car was financed the amount financed less payments was part of your available credit. Now that the account is closed, your available credit went down by the amount the car was financed for. That reduces your FICO score.


Okay this is definitely misinformation.

Having a $6000 limit on a credit card with $1000 on it equates to $5000 available credit
But taking out a $20000 loan on a car and owing $5000 on it still does NOT equate to having $15000 in available credit. Auto loans are different than revolving debt (credit cards). This has entirely everything to do with paying off early, not just paying it off.


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## bsliv (Mar 1, 2016)

RaleighNick said:


> Okay this is definitely misinformation.
> 
> Having a $6000 limit on a credit card with $1000 on it equates to $5000 available credit
> But taking out a $20000 loan on a car and owing $5000 on it still does NOT equate to having $15000 in available credit. Auto loans are different than revolving debt (credit cards). This has entirely everything to do with paying off early, not just paying it off.


I believe this is correct. I track my accounts. Paying down my car loan does not increase my available credit. Paying down cards does increase my available credit.


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## Snowblind (Apr 14, 2017)

But guys,
I have only two Credit Cards.

Wells Fargo = Limit $12.500.00
Citi Bank = Limit $22.000.00

Balance on Wells Fargo = $0.00
Balance on Citi Bank = $1200.00 (Which will be paid off in the next few Days).












That was then.










And this is now.


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## bsliv (Mar 1, 2016)

10% of the score is the mix of different types of credit. You no longer have a car loan. 
35% is your payment history.
30% is how much you owe.
15% is the length of credit history.
10% is new credit.


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## Snowblind (Apr 14, 2017)

Ok, GLE Coupe, here we come. What's another $700/ month for the next 5 years?










One can dream, right?


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## LAuberX (Jun 3, 2014)

$700/month for 60 months $42,000.00

I would rather see my bank balance increase by that amount. 

No car looks as good to me as money in the bank.

I'm not getting any younger and making money for a rainy day is getting hard!

The rain will come, I sure hope I'm ready when it does.


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## CZ75 (Aug 10, 2018)

Just remember that a credit score is an "I love debt score."


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## wb6vpm (Mar 27, 2016)

wb6vpm said:


> Not reading through 7 pages to see if this is said or not, but the reason your credit score went down is most likely due to your average account age being recalculated now that your 5 year loan is now closed. It probably lowered your average age of open accounts. In case that doesn't make sense think of it this way:
> 
> Loan 1: 5 years open
> Loan 2: 2 years open
> ...


Not sure if this is being read much or not since it ended up as the last post on the page.


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## NoPooPool (Aug 18, 2017)

CZ75 said:


> Just remember that a credit score is an "I love debt score."


Maybe to some. I hate debt. I carry as little as I can. I use credit wisely, such as 6 months same as cash on tires, which I seem to always be buying a set for one of my family's three drivers, and use a company with DT in their name. Any computer, tv, software and hardware needs, I take advantage of 12 months same as cash for purchases $499>, and 6 months same as cash on lower priced items when available.

I hate debt as I said, but everybody has a credit score, if they ever applied for credit. My score stays between 820-840. So no worries barring some major financial catastrophe. NoPooPool


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## Kodyhead (May 26, 2015)

bsliv said:


> I believe this is correct. I track my accounts. Paying down my car loan does not increase my available credit. Paying down cards does increase my available credit.


It's a loan vs revolving debt.


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## Santa (Jan 3, 2016)

Q.. Why did my score go lower now that I paid my loans off?

A.. Credit Score has been formed by the financial institutions collectively. And Because the financial institutions can't keep make money off you at present, your score went low. It will keep going lower unless you get another loan.

Q.. How can I keep a higher score?

A.. By having loans with a balance of no more than 30% across all your loans (eg. Your Credit cards should paid atleast 70% each). 
Try to pay slightly above minimum payment before the Due Date.

Keeping your loan balances at 30% or slightly lower will keep your score high because you are a milking cow for the financial institutions.

As an eg You have 2 credit cards..
CC 1 has a maximum limit of $5k and CC 2 has a Max Limit of $2K

CC 1 should have a maximum borrowed amount of no more than $1,500 (30%).

CC 2 should have a borrowed amount of no more than $600 (30%).

Make your minimum borrowed amount to 25% on each Credit Card.

This info was in an article couple years or so ago and was given by someone in the industry.

Remember that if they can't make $$ of you then they don't need to give you a shiney Credit Score.


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## Bluto1899 (Aug 24, 2018)

Snowblind said:


> Anyways, a couple of months ago I made my final payment on my Car. No more $638.00 a month payments.
> It was a 5 Year loan. So I'm expecting my Fico score to go up,....right?
> Common sense would tell you that it would go up?
> Nope, it went down 5 points. That makes me angry. Never missed a payment, it was deducted from my account automatically, and now I'm down a few points. Can anyone explain that one to me?
> I owe nothing to anyone, except my House payment perhaps. My CC (I have two) are paid off on a monthly base. I never spend more than I make or can afford. So what the &%[email protected]!* is this now?


If the car loan was the oldest loan in your credit file, your "Years with credit" portion just went down. It's crazy, but that's how the look at it. I have a Citi card I got at 18 that I'll keep forever for that reason.
Plus, debt to income ratio is way more important than your credit score. Taking $600/month off your debtload is huge.


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