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hmk2015

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Why did my credit score drop???
I just recently paid off four of my debts that were listed on my credit report. Why would this cause my score to drop? Ironically enough, my ex and I had shared a loan which, as 'ex' is self explanatory, I refinanced the loan in my name only since I was the only one making payments every month and ended up paying off the full amount early, his score went up; mine goes down??? After doing what I was told would help my score, I check it to find it has dropped 17 points? Are you kidding me? I am extremely disappointed in my results and would love some answers as to why this has happened. What am I doing wrong? I thought I was doing the right thing and now feel that I have been, well obviously, wrong on how this works. Please, if there is any advice or other options other than posting a blog to where I can speak with someone directly about this, that would be amazing. I am finally in a position to where I am able and eagerly willing to raise my credit score and this was NOT what I was expecting. Disappointed and looking for some answers/advice.

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When you refinanced the loan, you opened a new account and that reduced the average age of your accounts. The new loan is "maxed out" so to speak, you owe as much as the loan was written for and that is a bad thing. Once you get that loan paid down, it will help your scores recoup. You also most likely got hard inquiries for applying for the new loan and that will reduce your scores. If you are really serious about getting your credit improved you will take the time to read everything that you can on the subject. Designate an hour or two a day for the next month or two to spend time reading everything that you can about credit. Please feel free to ask any questions that you have along the way of your credit building journey, but make sure that you take plenty of time for reading, there is a wealth of information on here and across the internet. Some hours of reading now are better than years of regret later and the knowledge that you will gain will be valuable for the rest of your life.

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