Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Credit Scores
Profile Image

Question By

0 Contributions
0 People Helped
Massive Payoff = 100 point score DECREASE?
I've never paid off a car before, but rather used the old ones as trades for new ones.

So I was excited when I paid off my car. I understood that a long-standing trade line was closing & this would have a negative impact on the overall length of my open accts., but I imagined that relieving myself of this $600/mo. burden would essentially eliminate all but a couple very small debts, making me a far better credit risk.

Imagine my horror when I clicked on my new score alert only to see that my credit score had DROPPED by just over a HUNDRED points! I am now considered sub-prime due to paying off a $55k car as agreed...what? I checked my report thoroughly & the only change was the closed/paid account.

I don't understand this.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.