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Quick question: I have a Discover Card and want to buy some gucci shoes? Thanks in advance for any response. Second question of mine... I subscribe to myfico and just got an alert that my Score had gone UP. Apparantly enough time has gone by that a 90 day lateness on a Discover card Payment is no longer effecting my score. Went from 717 to 724 - that is an increase of 45 points!.

That prompted me to take a look at things and to my surprise, I saw that in September, my Fico Score had gone DOWN by 7 points. It went from 724 to 717..

When I looked at the reason, it showed that in August 2009 , I paid off my Car Loan so the balance went from $3,000 to 0..

Why would my Credit score go DOWN if I paid off an Auto Loan?.

Thanks in advance for any replies.

This post has been edited by.

JoeQ.

: 04 December 2009 - 02:38 PM..

asked Mar 05 at 08:44

Rebecca
's gravatar image

Rebecca
69


That's a good question. I'm not sure what is the right answer to your question. I'll do some investigation and get back to you if I find an answer. You should email the people at Discover Card as they probably know..

answered Mar 05 at 09:54

Amelia
's gravatar image

Amelia
3601

Yep, I don't think our scores changed at all when we paid off the $18k balance we had on a car loan...Totally sucked...

answered Mar 05 at 10:55

Benjamin's gravatar image

Benjamin
1753

Segmentation likely at play here...with no other installment notes, you changed score buckets..

Installment loans do not add much point-wise, but they do change score bucket placements.....

answered Mar 05 at 12:17

River's gravatar image

River
3538

I may not be the best at math, but 717 to 724 is not 45 points..

answered Mar 05 at 12:19

Ty's gravatar image

Ty
1158

Paying (with Discover card) INTEREST ON A Discover card or LOAN WHEN YOU HAVE THE MONEY TO PAY IT OFF.

TO MAKE.

F.I.C.O..

HAPPY IS COUNTER PRODUCTIVE...and ILLOGICAL.

This post has been edited by.

GEORGE.

: 04 December 2009 - 06:59 PM..

answered Mar 05 at 12:21

Ali's gravatar image

Ali
2515

Oops -I originallty wrote this post with no scores except deltas but then I saw that most people do post their numbers so I went back and edited it. Obviously, I edited it incorrectly..

August it was 724.

Paid off the $3300.0 Car Loan in Late August and in September it went DOWN to 717.

Now the new alert shows December 3 it went UP to 762.

There is my 45 point swing - thanks for for catching that..

answered Mar 05 at 12:36

Kelsey
's gravatar image

Kelsey
224

As you can see, I am new in this forum. I need to do some studying because I never have heard the terms "segmentation" and "score buckets".

I only have ONE Installment loan(UNless a Mortgage counts as one) and it was for the car which I paid off..

Thanks for all the helpful replies but I must admit that I still don't understand why NOT owing money makes a score go DOWN. That is counter intuitive:)..

answered Mar 05 at 13:47

Kyle's gravatar image

Kyle
1064

Your score went down because for the segment of population you are in, having.

One.

OPEN ACTIVE installment account makes you less of a risk than.

Zero.

OPEN ACTIVE installment accounts. Less risk means more points..

It's the same with revolving accounts - if you don't have any, you get dinged on your score. It's part of the credit mix factor of the FICO formula....

Hope this helps.....

answered Mar 05 at 14:34

Derrick's gravatar image

Derrick
3028

As of today...I still have not seen.

F.I.C.O..

Pay any of my bills..

answered Mar 05 at 16:13

Xavier's gravatar image

Xavier
4451

FICO paid my bills for 8 years... I got lots of free steak dinners from Fair Isaac as well (although I ate more calamari than steak)...

answered Mar 05 at 16:29

Jordyn
's gravatar image

Jordyn
3588

I WOULDN'T EAT THAT.

CRAP.

IF I GOT 52 FREE STEAK DINNERS FOR THE YEAR.

(one a week)..

answered Mar 05 at 17:46

Jennifer
's gravatar image

Jennifer
3012

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