I heard when you can pay off debt, your score goes down "temporarily". But realistically, does it really go back shortly? it also went down 25 points a month ago cause my sister paid off her car that i cosigned with which i completely forgot i did. So i lost a total of 40 points 🫠now i am back at 751 instead of789……
My friend who is 27 said im stressing too much over it, its not like i was gonna make a big purchase. Not sure why she made it sound like i shouldn't be upset over this. I get i still have a good score but it was literally at 789 which took work 😅 not sure if she feels some type of way cause im 24 and she feels some type of way cause im at a good financial spot….. 😅
My credit score went down another 15 points for paying off an account.
byu/Wonderful-Buy6444 inCreditCards
Posted by Wonderful-Buy6444
4 Comments
cash in my pocket feels better than a high credit score imo
dont worry about it.
Don’t worry about it – especially when it’s a pay-off. Same happened to me when I paid off my auto loan (60 months worth of payments). It drops, then over time it’ll come back up.
Same will happen for any and all financial loans (student, mortgage, personal, etc). ‘Tis the game you play with your credit score. However, it’ll slowly pop back up (sometimes even higher).
Just stick to financial discipline, pay all debt in full at end of each month, and carry on –
NEVER pay interest to keep your score higher. Do not do it.
Your friend is right, this is a non issue. I get it can feel discouraging when your goal is to see as high a number as possible. I do also think your last sentence is a bit odd to assume some ill intent from your friend…