Can someone make this make sense to me?
A few weeks ago, my FICO score was 813. As soon as I paid off the last of my mortgage, it dropped to 758.
Da fug?
Da fug?
61-69, M
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People assume that their credit scores is all about them and doing the right thing but that's incorrect.
It's about that, but also giving the system enough data points, to optimize their tracking system.
Why?
1) Because that's how they earn their money
2) They need enough data points to proper track you
3) And they want more, to get a better read of you, and again, that's how they earn their money.
So paying off your mortgage is good for you, but bad for them and their tracker, as they have less to go on and less information to sell people...
So your score goes down, as they have less active data points on you...
In other words, they manipulate the system, because they control the system, and they want more data points to track you better, so they can claim to be more accurate and charge more money.
So our credit scores aren't just about us, but also making the system happy with enough data points
It's about that, but also giving the system enough data points, to optimize their tracking system.
Why?
1) Because that's how they earn their money
2) They need enough data points to proper track you
3) And they want more, to get a better read of you, and again, that's how they earn their money.
So paying off your mortgage is good for you, but bad for them and their tracker, as they have less to go on and less information to sell people...
So your score goes down, as they have less active data points on you...
In other words, they manipulate the system, because they control the system, and they want more data points to track you better, so they can claim to be more accurate and charge more money.
So our credit scores aren't just about us, but also making the system happy with enough data points
simjks4 · 22-25, M
That’s pretty normal actually!! Cuz your mortgage was a long term account and paying it off reduced your diversity and active accounts
Always in the 825 to 850 area...
Same thing happened to me when I paid off the house....
But, it was just a temporary thing and it shot back up a couple of months later.
Same thing happened to me when I paid off the house....
But, it was just a temporary thing and it shot back up a couple of months later.
Beautyinbroken · 36-40, F
Once u close (pay off account) account it goes down i dont understand it either but mine did the same when i paid my mortgage off
I wasn't in debt for years and my credit became zero. We're told paying on our phones counts but it doesn't. They want you to be in big debt.
DeWayfarer · 61-69, M
Easy.
You're not giving them the interest.
They want you to regularly pay interest. No bill no interest.
You're not giving them the interest.
They want you to regularly pay interest. No bill no interest.
Doesn't have to be logical as long as you don't unplug over that
tenente · 100+, M
this doesn't make sense to me either. i was told my score was high because i had a blend of good credit history in multiple different accounts. but once i paid my mortgage off that blend became less diverse and my score dipped for a short period... everyone is different but that's what happened to me