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Posted in Auto Loans
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PatinoL

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Why did my score drop after paying off my car loan?

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Because you paid off your loan.

I know, it doesn't make sense, but thats the way it works.  Lenders want to see you actively making payments.  The less debt you have the less reliable the system assumes you are.  Any changes to the number of active accounts you have tends to draw your score down. 

Continue to make your other payments on time and your score should bounce back in a couple of months. 

Good luck 

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