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Fourseasonsgal

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I did the right thing! WHAT CAN BE DONE TO FIX MY SCORE credit Karma?
I am so angry right now I could spit- hell more than spit- I paid off my mortgage, and a car loan and my credit took over a 50 point hit! All my other payments are on time! I wanted to go purchase a newer car and now I will be stuck with higher interest and higher payment BECAUSE I DID THE RIGHT THING and lower my DEBT!! This system is very crooked ran by a bunch of CRIMINALS! WHAT CAN BE DONE TO FIX MY SCORE credit Karma?

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I'm Not Credit Karma But...

I am not Credit Karma, but I hope I can help.

After paying off installment accounts such as car loans, mortgages..etc, your score can take a hit.  This is pretty normal.  Let me explain why (Also, I'm not justifying the way the credit system works.  I too think it is a bit crooked at times.)

A decent portion of your credit score is based on the average age of your open credit accounts.  So, if you are paying, for example, a 30-year mortgage.  By the time you are nearing the end of your mortgage, you have an account with 20+ years history.  So continuing with this example, let's say you have a 30-year mortgage that has been open for 30 years, a credit card that has been open for 2 years, and a car loan that has been open 1 year.  Your average credit age on open accounts would be 11 years.  That's a good age for credit.  Now, you pay off your mortgage.  Your credit age has now dropped to an average of 1.5 years.  That's not such a great credit age.  Hence the drop in your credit score. 

If this is the reason for your credit score drop, your score will steadily rise as your other credit accounts get older.  This is why it is prudent to open a credit card after a mortgage.  The credit card will age at the same rate as your mortgage but not go away once the mortgage is paid off.

My advice, open a credit card or two if you don't have some already.  Keep a perfect payment history and do not close them.  Let the age of credit build back up.

Here is a good article talking about the age of credit:  https://www.creditkarma.com/article/age-of-credit-history

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Get another car loan. Your score will take another dip initially, but it should recover within a few months as you make payments on time. I know it's weird, but I've read many times people saying their score dropped when they paid off an installment loan of some kind (car, mortgage, or personal loan). Often doing the right or smart thing isn't what's best for your score.  Sorry, I agree that's messed up.
The good news is you have several dozen different FICO scores for different purposes. The one you would see if you bought it from a bureau is known as your "consumer score." Mortgage lenders, credit card companies, and auto lenders would all see something entirely different from one another.  Your excellent payment history would surely be factored into an auto FICO, so it might not be as bad as you think. 

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No worries

If its as you say, you paid every thing off and never was late on the payments. Go try and buy a new car and see if they don't roll out the red carpet for you. You will not be required to put any money down and you will get the lowest rate on top of it. You will drive it right off the lot that very day.

I might be wrong but I doubt it.

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