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Hyldami

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Paid off 14k tractor and cancelled a cc. My score when DOWN to fair from good. Why?
What happens when I have every thing paid off and I go to cash only? Will I have a score of 14 even though I have cash reserves? Do I still get a credit score when I have dropped dead?

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Top Contributor
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Credit. Is. Crazy.

To have a high credit score, you need to be actively using credit.  Closing a credit card "hurt" your score in a few ways.

1.  You now have one less account.  (Technically two less, when tractor got paid off, that is now a "closed" account).

2.  Your "Average Age of Accounts" dropped. (By a lot, due to losing 2 accounts that you've had for awhile).

3.  Your credit utilization went up (assuming that you have other credit cards still).

Going cash only is certainly not a bad thing to do.  However, with the right "rewards" type credit card, you can have your cash work for you.  Make only purchases on the card that you can afford to pay for with cash.  Pay off the card when the bill arrives.  You'll be making more money on your cash than the vast majority of banks give you in interest.  

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