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Posted in Student Loans
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HappyJeans

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Credit dropped after paying off loan because it "closed" ? Should I call to correct?
I have 4 subsidiary loans and i recently paid off one and noticed my credit score dropped. Not much by 2 pts. Why is that? So paying off a loan means the loan is "closed", but why is a negative thing?

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The 2 point drop might or might not directly from paying off your loans, could just from normal background noise. However, it is a thing that your score drops when you payoff a loan but usually are much greater than 2 point drop, unless it's been evens out by some other credit activities. Difficult to pin point the exact cause when comes to credit score movements.

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Dont know who you would call to correct this as there is no inaccuracy, it's paid and closed.

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