• eltrain123@lemmy.world
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    1 年前

    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?

    • TexMexBazooka@lemm.ee
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      1 年前

      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.

        • JDubbleu@programming.dev
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          1 年前

          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.