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!

Question

Posted in Student Loans
Profile Image

Question By
agmilano1

0 Contributions
0 People Helped
Paid off all student loans-credit score dropped?
I recently paid off nearly $70,000 of student loans and was extremely excited to see how my credit score would increase. I had a 762 consistently for the 2 years I've been checking it monthly. After paying off the student loans, I now have a 748?! I'm confused as to why this would be.

This is my only debt other than 1 credit card which I use for business purposes so it has high monthly spend, but is paid in full monthly.

Could it be that now that the credit card is the only "debt" and i use over 30% monthly, even though I pay it off in full?

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
3051 Contributions
2789 People Helped

You hit the nail on the head.  Since the student loans are closed, you've lost those good accounts, payment history, age and utilization.  If you keep a balance of 1-3% on your credit card at all times, your score will increase.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

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

View your scores and reports anytime.

SIGN UP NOW

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.