this post was submitted on 15 Feb 2024
1716 points (98.5% liked)
Microblog Memes
5832 readers
1801 users here now
A place to share screenshots of Microblog posts, whether from Mastodon, tumblr, ~~Twitter~~ X, KBin, Threads or elsewhere.
Created as an evolution of White People Twitter and other tweet-capture subreddits.
Rules:
- Please put at least one word relevant to the post in the post title.
- Be nice.
- No advertising, brand promotion or guerilla marketing.
- Posters are encouraged to link to the toot or tweet etc in the description of posts.
Related communities:
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
I'll take a lower score and no debt. They can eat their score.
They said, getting an offer for as low as 20% on their mortgage.
I said, having locked in at 2.75 when rates were at a record low.
So the secret to not worrying about credit score is simply already have the loans you want at an interest rate you want. Why didn't I try that???
Are we talking about 35 points from paying off a car? Or hundreds of points because reasons?
2 of the factors are debt to income ratio and how many accounts of different types are open. If you pay off 99% of a car and refinance 100$ loan for 84 months… does that keep your score up?
So the reason this kinda idiocy happens is when the line of credit is closed, it actually decreases the average age of your credit accounts- which decreases your score.
That’s why people who pay off student loans have their scores drop sometimes, especially if they’ve avoided any other lines of credit.
This. Average age of active credit accounts went down thus drop. Same thing happened to me
This is part of why getting credit cards early (if you're capable of being responsible with them) is so important. All my oldest credit lines are credit cards (I have 4 of them), so any future loans will be taking my average credit line down instead of up. As a result I'll always have those old credit lines and my score will only go up when I pay things off completely.
This right here is the way. Just gotta be cautious.
This is silly anyway. I've paid off and cancelled many credit cards and loans, and your score drops by a small amount temporarily. It doesn't stay down.