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Question By
chelou

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I have very little debt. If I pay off my mortgage in full, how will it affect my score?

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It would probably bring your scores down when the account is closed, but paying off a mortgage might be worth a score drop, you can always find accounts to replace it.

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Don't forget tax benefits of mortgage

Generally, paying off mortage is bad for your credit history.  It closes an open account PLUS shortens your credit history.  Having a home free of mortage is not necessarily the best financial planning.  The interest you pay on your mortage is a big tax deduction usless you are near the end of your 30 year mortgage.  So you would be better off putting extra money in a retirement account before paying off your mortgage.

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