Solved: Credit score dropped drastically with loan payoff
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Credit score dropped drastically with loan payoff

I may have just shot myself in the foot with my credit score. I paid off 2 loans with a retirement account. I did this because I was furloughed and the job market hasn’t been favorable. My credit score dropped 100 points!!! 

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Level 15

Credit score dropped drastically with loan payoff

Two factors that can impact your credit score are your credit mix and credit utilization; paying off a personal loan can impact both.

 

See https://www.nerdwallet.com/article/finance/credit-score-drop-pay-debt

 

 

Regardless, you should get your credit reports (free from the site below) and review them to ensure the information is accurate.

 

https://www.annualcreditreport.com/index.action

View solution in original post

1 Reply
Level 15

Credit score dropped drastically with loan payoff

Two factors that can impact your credit score are your credit mix and credit utilization; paying off a personal loan can impact both.

 

See https://www.nerdwallet.com/article/finance/credit-score-drop-pay-debt

 

 

Regardless, you should get your credit reports (free from the site below) and review them to ensure the information is accurate.

 

https://www.annualcreditreport.com/index.action

View solution in original post

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