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mcgregor96

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Paid off my truck on November 1st, 2012
Why after I made my last payment on my truck on November 1st, 2012, (and before that last payment my credit score was 720+...) did my credit score go DOWN to 612? Shouldn't it have gone up? I am SOOO confused!

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It's really horrible that you lost that much! But unfortunately, losing quite a bit off our scores when we pay off a loan or bring a credit card balance to zero is normal.

That shocks the heck out of people who understand that, in the real world, getting out of debt is a good thing. What we need to realize is that the credit scoring system is a specialized world occupied by lenders. The score measures not our prudence but our potential profitability. As soon as we get out of debt, we look much less profitable.

I'm sorry for what happened to you. I'm also guessing that that auto loan was either your only credit or close to it. If you had credit cards, a mortgage, or other loans on your record, paying off that loan still would have hurt your score, but nowhere near as much.

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