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.

[Dr. Acula]

Didn't know this is a thing. Is it because having a line of credit you're constantly paying on time is the only way they can gauge your "credit worthiness"?

Also, folks clown China for its social credit score when we have had this shyt forever and it's a step below being just as bad.

 

[Dr. Acula]

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.

That's kind of crazy. Shouldn't they maintain a history of your lines of credit and your ability to pay them off as part of the credit score calculation? At least that makes sense to me.

 

[Arizax2]

Ya the credit score system is a mess. It literally rewards you for having a little debt but it doesn't help you if you have no debt. I can be a millionaire and able to buy whatever I want but if I have no credit banks won't loan me money regardless if I have the cash in the bank. You would have to go and find a place that does manual underwriting like they did back in the day before the credit system was created when normal people at the bank made judgement calls to lend out a money.

 

[Cladyclad]

Your avg length of account drops off when u paid off loans

How long u been paying on your vehicles?

 

[Mr. Jack Napier]

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.

Yup, I learned this the hard way when I payed off my student loans.

 

[Stuntone]

What kind of motorcycle did you buy? Never occurred to me to take a loan for one. You can find them brand new at pretty much any price level. Used even more so. Insurance on them cost nothing when they fully paid as well so it literally pays for itself eventually on the savings.

Some bike cost more than cars.

 

[Denzel_Saucegton]

Put that card on cash app and throw me a bone it'll help you out breh

 

[Luke Cage]

Some bike cost more than cars.

Thats why i asked, what kind of bike was it? What made you choose a bike you need a loan to pay for instead of paying cash for like a harley 883 or an R7 or whatever?

 

[Mr. Manhattan]

i was just gonna make a thread, i finished paying off a $7000 loan and my credit dropped 26 points

 

[god shamgod]

This goofy just wanted to humble brag when you could of went to google or fico forums & got your answer

 

[Bboystyle]

i was just gonna make a thread, i finished paying off a $7000 loan and my credit dropped 26 points

30% rule breh. Keep your debts at 30% or lower and your score sky rockets. Pay them shyts down and it drops. Having no debt only matter when u making a big purchase like a car or house. Other than that, its best to keep cards with an open balance.

 

[Geek Nasty]

Try not to close out accounts you don’t use. Just leave them open and use now and then. I have 4 credit cards I rotate through to keep them all active.

 

[Geek Nasty]

30% rule breh. Keep your debts at 30% or lower and your score sky rockets. Pay them shyts down and it drops. Having no debt only matter when u making a big purchase like a car or house. Other than that, it’s best to keep cards with an open balance.

Not 100% sure but I think it’s 30% per account, not the total

 

[Bboystyle]

Not 100% sure but I think it’s 30% per account, not the total

Yes per account.

 

[BaggerofTea]

Isn't credit largely a government scam?