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Your periodic reminder that your US credit score is not a measure of your moral worth. It is a measure of how profitably the legacy finance system can lend you money.

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womanfredo tafuri

@mcmansionhell

Mar 26, 2021

my credit score tanked because i paid off my credit card debt. normal country.

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Aella

@Aella_Girl

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@primalpoly

im still confused by the quoted tweet; my credit score goes up the more i pay them off. Really, if I put more money on the cards the score drops. I'm confused what she's talking about? I guess if you pay off a loan, it'll eventually drop off your record?

6:12 PM · Mar 27, 2021

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and

because the agencies use a composite of factors to calculate your rate. Simply being debt-free doesn't ensure a good credit rating. If you have practically no credit history too, your score won't be able to grow high. It's kind of fucked.

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and

Utilization rate is one of the factors that determine your score

experian.com

What is a Credit Utilization Rate? - Experian

Credit scoring often considers your credit utilization ratio when calculating a credit score. They can impact up to 30% of a credit score.

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and

The quoted tweet is wrong. Paying down debt does not reduce credit score.

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and

From the sound of it, it seems like they paid off their debt AND closed their account. It makes sense why their credit score dropped.

Peasant-Elect, Pay Tree Arch

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and

They probably paid it off and then closed the line of credit. Part of your score is based on your longest standing line of credit, and if you close that, your score goes down. Happened to me when I paid off and cancelled my first credit card also.