• womjunru@lemmy.cafe
    link
    fedilink
    English
    arrow-up
    3
    ·
    edit-2
    4 days ago

    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

    • buffing_lecturer@leminal.space
      link
      fedilink
      arrow-up
      2
      ·
      3 days ago

      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.

      • womjunru@lemmy.cafe
        link
        fedilink
        English
        arrow-up
        2
        ·
        3 days ago

        That’s so ridiculous. Either way, it’s back up again but that drop was kind of a shock.

        • Triasha@lemmy.world
          link
          fedilink
          arrow-up
          1
          ·
          1 day ago

          Credit scores aren’t just about how likely you are to pay back loans, they are about how much money can be made off lending to you.

          Pay off loans early, and the lender makes less money, so your credit goes down.

          Closed accounts, inactive accounts, those aren’t making anyone else money, so less credit score.

          Paying on time is the biggest risk of lending, so it has the biggest impact, but doing things that lose your creditor money can make a difference on the margin.