Money Credit Karma

ndws · 07-26-2016, 09:50 AM

I paid off my car loan in early July. It wasn't scheduled to be done until Nov 2017. The bank closed the auto loan account obviously, and whammo...Credit Karma is saying I took a 60-something point hit

WTF.

That's going to take an insane amount of time to heal 60 points.

Did the bank report the account closing wrong, as if it were closed for a bad reason? Is Credit Karma full of shit?

rhinson1380 · 07-26-2016, 09:57 AM

It changes your utilization. 30% of your credit is factored in with how much you owe and how much credit you are using. It's the stupidest thing ever. Then entire credit system is broken and takes way to long to recover from something.

allen_kcCard · 07-26-2016, 09:58 AM

A quick Google search tells me that this is normal. Closed accounts (even paid in full ones) lower your score. It is stupid, I agree, but that is how it works.

ndws · 07-26-2016, 10:00 AM

That's nuts.

I get the idea of the account closing, etc. But Jesus. Its a car loan, they should be able to close it with an "atta boy" for being early. ****ing tanking my credit score for working ahead is the dumbest shit.

**The Franchise** · 07-26-2016, 10:01 AM

Quote:

Originally Posted by ndws

That's nuts.

I get the idea of the account closing, etc. But Jesus. Its a car loan, they should be able to close it with an "atta boy" for being early. ****ing tanking my credit score for working ahead is the dumbest shit.

Welcome to America.

**Dave Lane** · 07-26-2016, 10:06 AM

Quote:

Originally Posted by ndws

That's nuts.

I get the idea of the account closing, etc. But Jesus. Its a car loan, they should be able to close it with an "atta boy" for being early. ****ing tanking my credit score for working ahead is the dumbest shit.

Don't borrow money and it doesn't matter.

Amnorix · 07-26-2016, 10:08 AM

I'm not a credit score expert by any means, but I always kind of thought of it this way:

-- WE think the score should reflect how credit-worthy a person is. Are they a reliable payer? Do they satisfy their obligations? Can they manage money well?

-- the credit score industry is actually set up to tell banks if you are a GOOD BORROWER, which means that you won't default on the loan, are a good credit risk, and -- importantly to them -- THEY MAKE EVERY ****ING DIME THEY ARE SUPPOSED TO MAKE OFF YOUR ASS.

So you close an account early, that's BAD, because the BANK DIDN'T GET ALL THOSE EXTRA MONTHS OF INTEREST PAYMENTS.

Now, I may be completely off base here, but that is how I **think** ti works, kinda sorta.

Can someone enlighten us on whether I'm anywhere close to right?

ndws · 07-26-2016, 10:10 AM

Quote:

Originally Posted by Dave Lane

Don't borrow money and it doesn't matter.

My wife would not like me having a sugar momma, so....

ndws · 07-26-2016, 10:13 AM

Quote:

Originally Posted by Amnorix

I'm not a credit score expert by any means, but I always kind of thought of it this way:

-- WE think the score should reflect how credit-worthy a person is. Are they a reliable payer? Do they satisfy their obligations? Can they manage money well?

-- the credit score industry is actually set up to tell banks if you are a GOOD BORROWER, which means that you won't default on the loan, are a good credit risk, and -- importantly to them -- THEY MAKE EVERY ****ING DIME THEY ARE SUPPOSED TO MAKE OFF YOUR ASS.

So you close an account early, that's BAD, because the BANK DIDN'T GET ALL THOSE EXTRA MONTHS OF INTEREST PAYMENTS.

Now, I may be completely off base here, but that is how I **think** ti works, kinda sorta.

Can someone enlighten us on whether I'm anywhere close to right?

From what I've read about it, paying off early or not really has little to do with the credit hit. Its the fact that a diversified credit account was closed. Kind of a damned if you do, damned if you don't. But the banks should be allowed to close the account "honorably" so you aren't getting the hit regardless of what you do.

tx4chiefs · 07-26-2016, 10:23 AM

Open a credit card and get your ratio back. I always pay credit card in full each month and it keeps my score pretty high.

listopencil · 07-26-2016, 11:13 AM

Could be because Credit Karma switched to a much more volatile system somewhat recently. I have seen my score waver significantly for what I consider to be very trivial reasons. The good thing, though, is that your score also tends to spring back quickly. If your credit card company (or bank account) offers a free FICO score then check that often. Those tend to be less volatile even though they are probably using the same system or one that is very similar.

listopencil · 07-26-2016, 11:14 AM

Quote:

Originally Posted by ndws

From what I've read about it, paying off early or not really has little to do with the credit hit. Its the fact that a diversified credit account was closed. Kind of a damned if you do, damned if you don't. But the banks should be allowed to close the account "honorably" so you aren't getting the hit regardless of what you do.

Yeah, having different types of accounts helps your score.

**SAUTO** · 07-26-2016, 11:18 AM

It's ****ing dumb

KChiefs1 · 07-26-2016, 11:18 AM

It probably increased your debt ratio.

Never close an account due to this fact.

**SAUTO** · 07-26-2016, 11:27 AM

Quote:

Originally Posted by KChiefs1

It probably increased your debt ratio.

Never close an account due to this fact.

Are you saying he should have never paid the vehicle off?

07-26-2016, 09:50 AM
ndws Starter Join Date: Oct 2012 Casino cash: $10010931	Credit Karma I paid off my car loan in early July. It wasn't scheduled to be done until Nov 2017. The bank closed the auto loan account obviously, and whammo...Credit Karma is saying I took a 60-something point hit WTF. That's going to take an insane amount of time to heal 60 points. Did the bank report the account closing wrong, as if it were closed for a bad reason? Is Credit Karma full of shit?
Posts: 416

07-26-2016, 09:57 AM	#2
rhinson1380 Starter Join Date: Jul 2013 Location: Pensacola, FL Casino cash: $10004935	It changes your utilization. 30% of your credit is factored in with how much you owe and how much credit you are using. It's the stupidest thing ever. Then entire credit system is broken and takes way to long to recover from something.
Posts: 75

07-26-2016, 09:58 AM	#3
allen_kcCard Veteran Join Date: Sep 2004 Location: Kansas City Casino cash: $4453183	A quick Google search tells me that this is normal. Closed accounts (even paid in full ones) lower your score. It is stupid, I agree, but that is how it works.
Posts: 2,767

07-26-2016, 10:00 AM	#4
ndws Starter Join Date: Oct 2012 Casino cash: $10010931	That's nuts. I get the idea of the account closing, etc. But Jesus. Its a car loan, they should be able to close it with an "atta boy" for being early. ****ing tanking my credit score for working ahead is the dumbest shit. __________________ Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote. -Benjamin Franklin
Posts: 416

07-26-2016, 10:08 AM	#7
Amnorix In BB I trust Join Date: May 2003 Location: Boston, Mass. Casino cash: $10029808	I'm not a credit score expert by any means, but I always kind of thought of it this way: -- WE think the score should reflect how credit-worthy a person is. Are they a reliable payer? Do they satisfy their obligations? Can they manage money well? -- the credit score industry is actually set up to tell banks if you are a GOOD BORROWER, which means that you won't default on the loan, are a good credit risk, and -- importantly to them -- THEY MAKE EVERY **ING DIME THEY ARE SUPPOSED TO MAKE OFF YOUR ASS. So you close an account early, that's BAD, because the BANK DIDN'T GET ALL THOSE EXTRA MONTHS OF INTEREST PAYMENTS. Now, I may be completely off base here, but that is how I think** ti works, kinda sorta. Can someone enlighten us on whether I'm anywhere close to right? __________________ "I love signature blocks on the Internet. I get to put whatever the hell I want in quotes, pick a pretend author, and bang, it's like he really said it." George Washington
Posts: 43,125

07-26-2016, 10:23 AM	#10
tx4chiefs Starter Join Date: Aug 2013 Location: Texas Casino cash: $6596461	Open a credit card and get your ratio back. I always pay credit card in full each month and it keeps my score pretty high.
Posts: 423

07-26-2016, 11:13 AM	#11
listopencil Immanentize The Eschaton Join Date: Oct 2002 Location: In Partibus Infidelium Casino cash: $2225880	Could be because Credit Karma switched to a much more volatile system somewhat recently. I have seen my score waver significantly for what I consider to be very trivial reasons. The good thing, though, is that your score also tends to spring back quickly. If your credit card company (or bank account) offers a free FICO score then check that often. Those tend to be less volatile even though they are probably using the same system or one that is very similar. __________________ Good friends we have had, oh, good friends we've lost...along the way. In this great future, you can't forget your past. So dry your tears, I say.
Posts: 55,948

07-26-2016, 11:18 AM	#13
SAUTO Shit Join Date: Jun 2008 Casino cash: $10039067	It's ****ing dumb
Posts: 55,715

07-26-2016, 11:18 AM	#14
KChiefs1 I’m a Mahomo! Join Date: Aug 2004 Location: Mid-Missouri Casino cash: $6771021	Credit Karma It probably increased your debt ratio. Never close an account due to this fact. __________________
Posts: 54,038