From what I understand, the credit score is weighted for existing debt that is in a current payment status. When you pay off a loan that has been paid on a timely basis, the debt will disappear and your score will probably go down. People with a lot of debt who make their payments tend to have higher credit scores than those without debt. I am retired and no longer have any debt at all. My score dropped when I paid off my mortgage and car loans even though I have a very large investment portfolio. This might seem to be a little bit of a bummer, but good lenders will recognize a honest borrower who has a reasonable debt load and can make the payments. Don't worry about it. Most of all, don't get more debt just to improve your score.
