Lowered score

Forum|Forum|6 years ago
September 8, 2019
3 replies
0 views

I just payed off my student loans, which closed that account. My credit score went down. Why?

Anonymous_

Employee

In all likelihood, it is only temporary.

See https://www.businessinsider.com/why-credit-score-goes-down-after-paying-off-loan-credit-card-debt

Anonymous

how paying off student loans can affect credit score

https://studentloanhero.com/featured/student-loans-credit-score-how-paying-off-your-student-loans-affects-your-credit-score/

AdrianG001

If you’ve recently closed an account, your score might drop. If the account was quite old, then closing it can cause the average age of your accounts to fall. Sometimes your score may follow suit. Closing an old account can also mean you have less credit available overall. If, by closing the account it pushes your credit usage over the 50% level, then it could negatively impact your score.

Regards,

Adrian