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newme1963

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i had a $500 unsecured loan and paid it off in 3 months, credit score drop by 30+ points. why?

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Because you closed the loan. Open accounts in good standing is what maintains good credit. I definitely understand your confusion on this, you would think a list of paid off loans would do you good, but keep in mind in your situation, paying a loan off in three months is not a good or true indicator of how a person will handle credit over longer periods of time. Just about anyone could take out a loan, put the money in the bank, then repay it quickly to pay off the loan and this is why it cannot truly determine someone's credit worthiness.

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