Question

I’m perplexed about something.  My credit score just increased by 30+ points on two credit bureaus after refinancing my vehicle.I’m perplexed about something. My credit score just increased by 30+ points on two credit bureaus after refinancing my vehicle. (Using Credit Karma to monitor) While I realize an increase is expected overtime, I’ve made no payments to the new loan yet, and my previous lien-holder has not yet reported the old loan as “paid in full”. All that currently appears is a “new account” with the new lien-holder. I was under the impression that a credit score is likely to DECREASE when opening a loan, that’s of course until the previous auto loan is reported “closed/paid in full” or until good credit is established with the new lien-holder by making regular payments. What likely made it increase as opposed to decrease? I’m not expecting expert credit counseling advice.  

Answer 1

Credit karma isn’t an accurate representation of your credit score so hard to know if your score actually did change one way or another.  

Answer 2

One of the things listed on why my credit is low is not enough open accounts (I only have one thing open). So maybe it is the same with you?  

Comments

@hauteur Perhaps. The only account open was my auto loan, so maybe it thinks that I have two accounts since the old one has not yet been reported as closed. But that is technically debt, so shouldn’t my score decrease and not the other way around? But like you said, I guess if one of the factors to lower credit is “not enough open accounts” that could be the reasoning for the unexpected increase.