Credit scores could end up being 20 or more points lower, according to financial experts
This, uh… doesn’t sound terribly impactful? My score fluctuates ±50 points just from regular credit utilization, idk what throwing 60k in student loans onto the report would do but - 20 points sounds very optimistic.
So I checked my history and you’re right, over the last 2 years the wildest swings I’ve had have been ±20, but I also haven’t spent wildly on the cards like I used to, not exceeding 50% utilized in this timeframe.
But I think a mortage being a secured loan probably reduces impact too.
(I’m not a banker or finance person, just someone who’s watched their score rollercoaster on apps in my less responsible youth lol)
Some credit card companies will change your credit limit after you make a large purchase, so that no matter now much you pay off, you’re always just under your limit.
I’ve never heard of that happening. That sounds… Fraudulent. However, the idea is to have more than one card (you don’t need to use them), so your limit isn’t dependant on a single card, especially once that plays idiotic games.
Are you checking your credit score through your bank? My bank offers that kind of thing but it’s not all that accurate. I see mine go up and down Randomly. I paid off loan early and it dropped about 10 26 points. It went back up, and is usually always hovering around the same spot.
Edit: actually went down 26 points during the month I paid off some Loans,holy shit
It makes sense that your score went down when paying off loans. I have heard that closing accounts, credit lines, and phone plans do the same too. Supposedly because now theres “less history” of your good credit, or maybe just because of lower credit utilization.
This, uh… doesn’t sound terribly impactful? My score fluctuates ±50 points just from regular credit utilization, idk what throwing 60k in student loans onto the report would do but - 20 points sounds very optimistic.
Not only is a 20 point drop nothing but if everyone’s score drops 20, nothing has changed.
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A 50pt fluctuation is wild, like honestly you should look into why. Getting a mortgage didn’t affect my score by 50pts…
The -20 probably assumes you’re still making the loan payments.
So I checked my history and you’re right, over the last 2 years the wildest swings I’ve had have been ±20, but I also haven’t spent wildly on the cards like I used to, not exceeding 50% utilized in this timeframe.
But I think a mortage being a secured loan probably reduces impact too.
(I’m not a banker or finance person, just someone who’s watched their score rollercoaster on apps in my less responsible youth lol)
50% utilization is still enormous. Mine rarely goes above a few % pts
Some credit card companies will change your credit limit after you make a large purchase, so that no matter now much you pay off, you’re always just under your limit.
I’ve never heard of that happening. That sounds… Fraudulent. However, the idea is to have more than one card (you don’t need to use them), so your limit isn’t dependant on a single card, especially once that plays idiotic games.
Are you checking your credit score through your bank? My bank offers that kind of thing but it’s not all that accurate. I see mine go up and down Randomly. I paid off loan early and it dropped about
1026 points. It went back up, and is usually always hovering around the same spot.Edit: actually went down 26 points during the month I paid off some Loans,holy shit
It makes sense that your score went down when paying off loans. I have heard that closing accounts, credit lines, and phone plans do the same too. Supposedly because now theres “less history” of your good credit, or maybe just because of lower credit utilization.
That’s so ridiculous. Either way, it’s back up again but that drop was kind of a shock.