So I just paid off $47,000 mortgage and my score went down. Why?
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Paying off a loan can be a big relief—but if you monitor your credit scores, you might be surprised to find your scores don't improve. In some cases, they may even drop a little. It can be counter intuitive, as successfully paying off a loan and having fewer bills is good for your personal finances. Most likely the impact will be temporary.
Here are a few reasons why your score might drop when you pay off a loan:
In general, paying off a loan won't have much of an impact one way or the other, and if your score does drop, the change will likely be temporary. But the presence of the account on your credit reports can continue to impact your scores for years to come.
Paying off a loan can be a big relief—but if you monitor your credit scores, you might be surprised to find your scores don't improve. In some cases, they may even drop a little. It can be counter intuitive, as successfully paying off a loan and having fewer bills is good for your personal finances. Most likely the impact will be temporary.
Here are a few reasons why your score might drop when you pay off a loan:
In general, paying off a loan won't have much of an impact one way or the other, and if your score does drop, the change will likely be temporary. But the presence of the account on your credit reports can continue to impact your scores for years to come.
Because you paid it off.
Sounds weird but true. If you owe money and are keeping up with payments.....you are a darn good risk. If you have no debt.....you might not be that great because you aren't paying any debt.
Heck, I have watched my score fluctuate by as much as 40 points just from normal monthly credit card activity.
I used my card for business expenses. Score skyrocketed. Paid it off, dropped below my average.
Ya know, the more I think about worrying about a credit score, especially when you know your own is good.
Go out and buy a bottle of whiskey. Celebrate the fact you paid off that **bleep** mortgage.
Get snockered, drunk, make noise....Be Happy!
Screw the bean counters and their snot head numbers.
Dammit.....Congratulations for paying it off.
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