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sparyn

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Score drops 50pts after paying off house,why?

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Age of open credit accounts is different

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Because you no longer have that open credit line reporting your long hisotry with the creditor.  Meaning the average age of your oldest open account is now less than it was before.  Remember that age of credit accounts totals 5 to 15 % of your score (depending on what scoring model is used), and on a scale of 800+ points.... that can be 80+ points.  But now that you have extra income from not having to pay for the mortage each month, you can opt to pay off some credit card balances, and reduce your overall credit utilization to recoupe those lost points.  Just dont close those accounts if you can avoid it.

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