WTF Going on? I paid my CAR and Motorcycle off, cleared my Credit Card Debit, No Late Payments. Credit Score Dropped from 835 to low 700s.

[Stuntone]

My credit score has been over 800 for years.

Both my Car and Motorcyle account closed out this year
I opened a Nordstrom Rack account
Paid my Credit Card down to zero this year
Only debt I have is 1 payment left on a loan I renovate my home.
$37,000 Credit Card Limit with no Balance.

One of my scores in like 753, the other is 682. WTF



Somebody explain this shyt to me.

 

[hatealot]

You can't divide by 0.
The algorithm doesn't respect zero balance.

 

[Wepa Man]

It will go right back up in a few weeks

 

[97Pac]

Average age of your accounts went down.

 

[King Poetic]

It should go back up in a month or two

Don’t worry

My score dropped when I paid my car off and a month later it jumped back up

 

[Kiyoshi-Dono]

Why Credit Scores Could Drop After Paying Off Credit Cards

Paying off credit card debt typically causes your credit score to improve. But there are some actions that may cause it to drop, like canceling a credit card.

www.experian.com

Here's when paying off debt can actually hurt your credit score

Select explains what kind of debt payoff may cause your credit score to go down; here's why you should still aim to pay it off anyway.

www.cnbc.com

 

[MurderToCassette]

I paid off a couple credit debts in the past few months and my shyt dropped by like 30 points. Never missed, never late.
Had me

 

[The_Sheff]

Your car and motorcycle loans had a very low balance to total credit ratio. Once you paid those off they dropped off your report so you had less overall credit to boost your score. It should go back up in a couple months.

 

[Originalman]

OP when ever you pay off a loan it closes an account and your credit score takes a hit. Happened to me when I paid off dffferent stuff (Cars, Student Loans, Home). Credit is all a hustle the more debt you have that you pay a steady bill to every month with no late payments helps your credit score.

Don't worry after 6 months to a year and a 1/2 your score will go back up to where it was.

 

[Htrb-nvr-blk-&-ug-as-evr]

Loan payoffs are negatively rewarded…it kills your credit mix. Max points are awarded when you have a mix of rotating accounts and installment loans. You’re also penalized for having all revolving accounts reporting at zero. It’s stupid.

 

[CouldntBeMeTho]

Credit is a scam. That's why lol

 

[Beer Drinker]

You get penalized for paying off loans.

It's fukkING STUPID.

Happened to me when I paid off a car loan.

 

[Mindfield333]

Did you close any of the cards?

 

[StretfordRed]

Pay your debts brehs

But seriously I close off all major debt but keep my credit cards. I got a notice from my check score company I’ve had my oldest for 15 years with no late payments.

I’m 999 on one and the other is closer to 800

 

[Orange cream shake]

It’s because you reduced your credit age when those accounts closed which is why I paid my car off the day of closing because I knew my score was dropping. Every time I pay off a car my score drops over 30 points. I also have a relatively young credit age. Like 7 or 8 years because I only have one card that I’ve had for almost 15 years. The rest are all under about 7 years.