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Posted in Mortgage
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Question By
supperman1

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I PAYED MY HOUSE OFF WILL THIS BRING MY SCORE UP?

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Helpful to 4 out of 4 people

Encouraging people to stay in debe.   Thats just brilliant...

Top Contributor
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Helpful to 3 out of 4 people

Congratulations!!

Just remember, that our credit score is actually our "I love debt" score and, once you have paid off everything, then you don't need it anymore! 

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Mortgage pay off.

Helpful to 3 out of 4 people

I paid my mortgage off this month and I experienced a 46 point decrease. There was a "hard" look at my credit by the VA that attributed to the decrease as well. A 781 to 745 in a very short time...not good.

Reply by
jpeez713

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Helpful to 1 out of 1 people

A 36 point reduction...sorry about that.

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Creditor was not happy

Helpful to 1 out of 1 people

By the way, the creditor was not to happy, especaily since you seemed to be a good paying customer.  Banks are in the business of keeping notes out as long as possible to collect the most interest over time.  This of course had littel or nothing to do with your score. 

Just a humorous comment.

By the way congratulations fo being free of the banks and owning your property outright and keeping more cash in your pocket.

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Debts with long good history

Helpful to 2 out of 3 people

The idea is that the credit report shows how you can handle debt. Along with your debt worthiness.  The debtworthiness is asset to debt ratio.  The portion that shows how well you handle your accounts is the tradelines history.  If you have a large tradeline such as a mortgage that you have been paying over a long period of time which is a long hstory, then once you loose the longer history account there is a deduction from your credit for history and the good payment status of the newly non-active account.

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Cost me ten points

Helpful to 2 out of 3 people

We were so happy that we were able to pay off our home loan after all the years, We then found my score went down 10 points. might be better  to not pay it off, but not having that payment every month is worth the 10 points. Does not make sence that you score would go down but it does  ??

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Helpful to 3 out of 5 people

Strangely enough, it may drop your score because (1) you've lost a line of credit (so to speak), which negatively affects your overall utilization and (2) you've lost a type of credit (mortgage).  Mix of credit counts for 10% of your score.  Utilization is 30%

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Mortgage

Just sold my house and that was the largest creditor on my report and the next is my credit card of 1800.00 which it will be paid off in a couple of days . Will this bring my score down alot?

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HECK NO

I recently paid off my mortgage and my home equity.  My credit score DROPPED 57 points!!! That is crazy!  I have a 100% on time payment history and still it dropped.  I paid off all my credit cards and it dropped.  I guess it doesn't pay to do the right thing.

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