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| *Loan,banking and credit>>>debt loan |
I just paid off my car loan and a credit card. But my FICO score dropped 32 points, why? I'm paying my debt! |
I'm paying off all my credit cards, not closing them. But I want $0 balances on them. I paid off my car 6 months early, I never missed a payment and I was never late. Why would I be punished for doing the right thing? How could my score drop that way? Shouldn't it go up??? Should I not pay my debt off? I'm discouraged now. Shell shocked is more like it. you got some good replies already and here's some in depth reading, should you need it: http://credit-cards.ebookorama.com... http://finance.ebookorama.com http://credit.ebookorama.com http://credit-repair.ebookorama.com... good luck! when you pay off loans and do not close them you are a risk that you can spend it all.so close them down too much credit is bad. You paid off your debt early for one. Its screwy but they want to see you pay stuff off on time, not early. Keep up the good work with paying off your debt it will help you to have those positives. Remeber that each time you apply for credit or check your credit it drops your score, so be careful. I wish you luck. If you want to learn more like myself, subscribe to Truecredit.com. They have information on how to raise your score, what to do and what not to do. It has helped me get a better understanding on how the whole thing works. They can even show you how dispute errors on your credit report. http://www.truecredit.com/entry/truecred... go get another low interst loan and pay it off on time but not earlier. they hate when you pay off too fast cause they lose money. the good thing is you payed it off and are debt free for now but creditors like to see some debt that is paid on time not early. 32 points is not a lot it will vary some in the course of your life. keep using your credit cards to buy stuff and pay off monthly that will help your score too. an active credit which is being paid off regular is better than lump sum payments. Go to the bank or local credit union or trust company where they not too busy and talk to them they love to answer questions and basically do nothing but gloat that they know something. look at it as a imfo service at your disposal It will go back up. Don't close your cards either use them at least once every six months. How long had you been paying on your car? Sometimes paying things off too early can hurt you, I owe another 3K on my car and was told to continue making monthly payments instead of paying it off. I joined Truecredit last month, and I love it, it tells you what you can do to help your score. |
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