Showerthought: My credit score tanked after I paid off my car loan early

I was at my kitchen table last month checking my credit karma app and saw my score dropped 40 points. Turns out closing that installment account reduced my credit mix and average account age. Anyone else get hit by this when they thought they were doing the right thing?

2 comments

2 Comments

elliotl241mo ago

Ending up with a lower score for paying off debt is like getting punished for eating your vegetables.

beth_baker691mo ago

It's such a scammy system. Clean up your finances and they slap you on the wrist for it.