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Posted in Auto Loans
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Question By
jc2014

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Why does my credit score randomly go down 40-50 points?
So...let me get this straight

I pay off my car loan. Credit goes down
I pay my car loan off too early. Credit goes down
I pay my car loan on time with it's normal monthly fee..credit goes down
I have another loan account open...CREDIT GOES DOWN??? WHAT IS THIS?
I have NO loans open...credit STILL goes down.

You've got to be kidding me.

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no thats what happens when you have loans to AVOID this problem you need a credit card....when you pay them off (personal loans, car loans mortgages) and they get closed out your score goes DOWN but congrats you got yourself out of debt....APPLYING for a new loan causes a hard inquiry so you lose 5 points.....if you DON'T HAVE A CREDIT CARD get one this will help balance out your credit report and improve your credit score just be sure not to use more then 20% of your limit ie: $1000 limit don't go over $200 per month this will maximize scoring potential INSTALLMENT loans are just one type of credit.....CREDIT CARDS are REVOLVING accounts you need a mix  to maximize score

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