I have no debt besides student loans in good standing. I never carry a balance on my cards.

Recently, I traded my car which had positive equity for a new one. The bank who financed my new car paid off my old loan and carried the equity into my new loan.

I've read about people experiencing drastic drops after paying off their car loans. I guess the FICO model gives a boost when the balance is under a certain threshold? So not only did I lose this boost but the model is penalizing me for taking on more debt, correct?

Just to be clear, I arranged all the financing myself. There was only 1 hard pull.

My FICO 9 dropped 50 points but my FICO 8 dropped around 25. How long should it take to recover?