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Posted in Mortgage
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Question By
tibeau

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I sold my home and paid off my mortgage and my credit score dropped 90 points - why?
I would think that would show that I am a good credit risk since I have paid off a mortgage instead of dropping my score!!

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Yea its a scam

Helpful to 18 out of 18 people

The whole credit system is designed to make the banks money and keep us in debt to do so. They penalize us for any type of tangible wealth building activity. If you have to much card debt you are in danger of default, so they cant have that! Gotta keep you in the sweet spot where you are chunking payments their way but not a big hit if you belly up. Paid off 2 of 3 properties and my score dropped 35 points. Showed account closed as reason. Well no **** , of course there closed, they are paid! Banksters are gangsters 

Reply by
moe1278201

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49 People Helped
Helpful to 4 out of 4 people

Same thing here, paid mine off score dropped by 40 points

Reply by
iamsoofun

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What I think if everyone hates it is get everyone to go to the same back and take out as much as you can. The banks won't have enough money to give everyone

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4 People Helped

credit scores are joke

Helpful to 3 out of 3 people

This happened to me yesterday. After paying, paying and paying an now im done and penalized? 70 point drop. Credit rating, are now a scam to me. Does anyone know a really good atttorney? Time to sue.

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2 People Helped

Mortgage payoff

Helpful to 2 out of 2 people

Hello we recently purchased a new home and in the process our old mortgage was paid off. This caused are credit score to drop! Why? What affect will this have on our new mortgage. We wotked hard to get our scores up!!!

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3 People Helped

-36 points on credit report

Helpful to 3 out of 3 people

I paid my house on time for the last 15 yrs never late i only have 4 credt cards with 35K in limits and im using 4%

i have a car loan thats down from 40K to 15K  and thats it so why would my score dropped so much it went from

822 to 786 over night i know its still good but its crazy to dropped so much i called all 3  credit companies and they cant explain why

its nuts that after you finish paying off your house ur get penalize with the drop

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MR.

And this is why cryptocurrency will revolutionize our current financial system.  People are getting tired of big banks taking advantage of them.  Buy Bitcoin and thank me later!

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samething happened to me. I sold my house and my credit score dropped 35 point. i was wondering why!

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4 People Helped

Helpful to 2 out of 4 people

Part of your credit score is LENGTH of good standing accounts. So take two people who's only debt is a mortgage. Person A has had their home for 10 years always making on time payments. Person B also always makes payments on time, but they have sold and bought a new house in the middle, so their credit shows 1 closed loan and 1 that's been open for a couple years. Even though both have been making on time payments for 10 years Person A is going to have better credit because they show more stability. Credit Bureaus see stability as responsibility and responsible people have a lower credit risk, there fore a higher score. So when you close an account your score can drop. The recommend, like with credit cards to keep a small balance (under 30%) but don't close the card. This will make your score go up.

Reply by
hqm

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Helpful to 15 out of 17 people

this is absurd , to drop a score when something is paid off makes 0 sense as it shows that the person has met their commitment on the debt. These scoreing agencies are a scam supported by the banks that loan the money and set the interest rates. 

Reply by
dchartog

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0 People Helped

Enter Your Reply Bull****

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Helpful to 0 out of 1 people

 I have heard that you need to show "some" payments, to prove you can make regular payments and are a good credit risk, but I understand your questioning!!  It's like I also heard that paying cash for everything wasn't good for your credit, because they need to see that you are capable of making regular, steady payments - go figure.

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