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Posted in Paying Your Bills
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jjwwss

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Paid off my mortgage and my credit scores dropped dramatically
I paid off my mortgage and my scores dropped on TU by 73 points and Equifax by 94 points. My account was in good standing without a late for 4 years. I have credit card accounts with a 21% utilization. Had some difficulties in 2009 and have been working hard to bring my score up (which I had). I have not had a late payment on any account since the 30 day on my mortgage 4 years ago. Now, thinking that I am reducing debt and a huge monthly payment would improve my scores, I am suddenly considered a higher credit risk because of the dramatic drop in my score in one month. Why does this happen and can it be reversed?

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