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Question By
Erina80122

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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.

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