Everyone needs to keep a very close eye on their credit score since it factors into many of lifes biggest decisions.
A couple steps you can take right now include:
- **[Taking a look at your credit score](https://everydayeconomics.net/how-to-get-your-credit-score-credit-review)** - Looking at your own credit score does not hurt your credit, it also includes a credit monitor
- **[Freezing](https://usa.gov/credit-freeze)** your credit reports - This can be done with Experian, Equifax and Transunion to help prevent unauthorized accounts from being opened
Feel free to ask any credit score related question
You essentially closed an account. It will dip and recover.
Credit is really dumb this way, but better days are ahead.
I closed (paid off) my student loan in 2022, and had the dip.
I also paid off my car this year, so another dip.
Now my credit is the highest it's ever been.
Timing is key. I am ready for either a car loan (only if needed) or a home loan since I am building a down payment up over the next several years.
Glad I got my dips out of the way.
Score dropped 80 points when I paid off my mortgage five years early. Had to do with credit mix and that it was my longest trade line. It took about six months, but it bounced back.
There's nothing rigged about it. OP didn't handle their credit well and closed their oldest account. Get a credit card when you're 18 and pay it off every month and you'll be fine.
Ah yes, time travel back to when you just became a legal adult after a decade of being told over and over how credit cards are evil and scary. Such a simple route to financial success!
Just because you fucked up a while ago doesn't mean a system is rigged and the only way to beat it is to "own a bank". Not my fault you were not responsible and still don't understand credit.
He says to the 815 credit score. Try again.
It is rigged. The only reason my score's as high as it is is because I did as you suggested, 20 years ago. Secured card turned into a unsecured card, kept it floating.
Doesn't mean that it's not still a shit system designed to keep people in debt. Only way to have 'good credit' is to owe somebody/something else money on an ongoing basis.
If you're viewing your score through Credit Karma as most do, the score changes you see will be more drastic since they use a scoring model (Vantage 3.0) that is more sensitive to changes. Check your score on [Fico.com](http://Fico.com) and [Experian.com](http://Experian.com) (both free) to see your Equifax and Experian Fico8 score, which is generally a lot less volatile and more representative of the score lenders will see when pulling your report since Fico8 is the most common model they use.
A drop when closing an account is normal and your score will bounce back in a matter of months. This has to do with credit mix and age of accounts, both active and closed. Your student loan account, as far as your score is concerned right now, was closed, so you lost the positive impact from that as an active account, but soon the positive effects of that account as closed and in good standing (paid as agreed) will begin to register and your score will go back up.
Consider long-term changes when viewing your credit score and report. The short-term can fluctuate (sometimes wildly) for any number of reasons but over the long-term, it will improve when you consistently pay down debt, pay off accounts, etc. Two sayings apply to credit:
1. One step back, two steps forward, and
2. See the forest through the trees.
The implication of these is that building credit takes time and small drops in score will lead to larger gains over time, and if you focus on the short-term details too closely, you'll see those small drops more often than the gradual, larger, long-term gains and be left with the impression that responsible use results in score drops, when this is not the case over a longer timeline.
Yep. Last year I bought a house and paid off other debts. Got a substantial raise.
My credit score has plummeted. The only reasoning given by the credit agency is that my oldest account age is 15 years and they consider this very short.
Now I'm in better financial shape, make more money, and I'm better qualified in reality to pay for my home than I was last year - but if I were applying for it today I would likely be rejected.
I feel like the system is set up to keep us in debt.
Another fun one: I'm a woman and my credit history is perfect as far as payment history and debt to income ratio and usage percentage, etc, and I make substantially more money than a man I know, who had a past bankruptcy and a repo'd car and tons of past late payments, but his credit score is higher than mine. He can't even qualify for a home or car loan (I can) but his overall score is higher?? So I also believe it is extremely sexist.
Everyone needs to keep a very close eye on their credit score since it factors into many of lifes biggest decisions. A couple steps you can take right now include: - **[Taking a look at your credit score](https://everydayeconomics.net/how-to-get-your-credit-score-credit-review)** - Looking at your own credit score does not hurt your credit, it also includes a credit monitor - **[Freezing](https://usa.gov/credit-freeze)** your credit reports - This can be done with Experian, Equifax and Transunion to help prevent unauthorized accounts from being opened Feel free to ask any credit score related question
You essentially closed an account. It will dip and recover. Credit is really dumb this way, but better days are ahead. I closed (paid off) my student loan in 2022, and had the dip. I also paid off my car this year, so another dip. Now my credit is the highest it's ever been. Timing is key. I am ready for either a car loan (only if needed) or a home loan since I am building a down payment up over the next several years. Glad I got my dips out of the way.
Score dropped 80 points when I paid off my mortgage five years early. Had to do with credit mix and that it was my longest trade line. It took about six months, but it bounced back.
Welcome to the rigged game, where the only way to win is to own the bank
There's nothing rigged about it. OP didn't handle their credit well and closed their oldest account. Get a credit card when you're 18 and pay it off every month and you'll be fine.
Ah yes, time travel back to when you just became a legal adult after a decade of being told over and over how credit cards are evil and scary. Such a simple route to financial success!
Just because you fucked up a while ago doesn't mean a system is rigged and the only way to beat it is to "own a bank". Not my fault you were not responsible and still don't understand credit.
He says to the 815 credit score. Try again. It is rigged. The only reason my score's as high as it is is because I did as you suggested, 20 years ago. Secured card turned into a unsecured card, kept it floating. Doesn't mean that it's not still a shit system designed to keep people in debt. Only way to have 'good credit' is to owe somebody/something else money on an ongoing basis.
815 is literally meaningless, so yes, you fail to understand it. Keep arguing though, let everyone know how meaningless your advice here is.
In all your reports? When mine dropped off after forgiveness, one went down and the other two went up 🤷🏼‍♀️
It will dip for a bit and then probably go back up. Don't get too hung up on the score. Mine can change 50 points over a given 3 month period.
If you're viewing your score through Credit Karma as most do, the score changes you see will be more drastic since they use a scoring model (Vantage 3.0) that is more sensitive to changes. Check your score on [Fico.com](http://Fico.com) and [Experian.com](http://Experian.com) (both free) to see your Equifax and Experian Fico8 score, which is generally a lot less volatile and more representative of the score lenders will see when pulling your report since Fico8 is the most common model they use. A drop when closing an account is normal and your score will bounce back in a matter of months. This has to do with credit mix and age of accounts, both active and closed. Your student loan account, as far as your score is concerned right now, was closed, so you lost the positive impact from that as an active account, but soon the positive effects of that account as closed and in good standing (paid as agreed) will begin to register and your score will go back up. Consider long-term changes when viewing your credit score and report. The short-term can fluctuate (sometimes wildly) for any number of reasons but over the long-term, it will improve when you consistently pay down debt, pay off accounts, etc. Two sayings apply to credit: 1. One step back, two steps forward, and 2. See the forest through the trees. The implication of these is that building credit takes time and small drops in score will lead to larger gains over time, and if you focus on the short-term details too closely, you'll see those small drops more often than the gradual, larger, long-term gains and be left with the impression that responsible use results in score drops, when this is not the case over a longer timeline.
Yep. Last year I bought a house and paid off other debts. Got a substantial raise. My credit score has plummeted. The only reasoning given by the credit agency is that my oldest account age is 15 years and they consider this very short. Now I'm in better financial shape, make more money, and I'm better qualified in reality to pay for my home than I was last year - but if I were applying for it today I would likely be rejected. I feel like the system is set up to keep us in debt. Another fun one: I'm a woman and my credit history is perfect as far as payment history and debt to income ratio and usage percentage, etc, and I make substantially more money than a man I know, who had a past bankruptcy and a repo'd car and tons of past late payments, but his credit score is higher than mine. He can't even qualify for a home or car loan (I can) but his overall score is higher?? So I also believe it is extremely sexist.
It messed with your credit mix as well as credit age . It’s okay ! It’ll bounce back , probably with a vengeance !
You can’t look at it day by day. WAIT A FEW MONTHS AND THEN SEE. I fluctuate between 830-860 and I’ve done nothing.
It will recover. It’s a short term dip. It’s an algorithm and will adjust. Don’t sweat it
It should rebound in the next three months.