Why does credit score drop after paying off a loan?
In: Other
Because the people that profit enormously off of you being buried alive in debt don’t want you to get out of debt, because that means they stop making money off of you. So if paying off debt dings your score, people are less likely to pay it off, or will be sure to stay in debt as they pay things off. I paid off all our debt after my father in law passed and his life insurance payout came to us, and even though I have a CC open, my score has now become “indeterminate” and I don’t qualify for any new loans. Not that I need them, we are now living an ultra low income, ultra low expense lifestyle.
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