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!!!
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.
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.
The credit score does not matter. The bigger problem is you had to cash out part of your retirement, causing you to pay taxes and penalties if your below retirement age. If you can find any job and replace the retirement money before the time limit (not sure what it is) and avoid the penalty and taxes, that would have way more benefit than your credit score. If it's too late, just max out retirement next time and don't take on any debts that would make you have to cash out retirements again.
It's contrary to some info out there, but in some ways a good credit score could be part of your problem. It made it easy to borrow money, and then you had to cash out retirement. You want to build wealth, not your credit score.