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