That $30 credit score drop last month was my own dumb fault

I paid off my car loan early and my score took a hit because my credit mix got smaller. Has anyone else had a 'good' financial move backfire like that?

2 comments

2 Comments

emma_mitchell13d ago

Paid off a credit card once and my score dropped like 15 points. The system just doesn't like it when you close accounts or pay things off early... even if it saves you money. Give it a few months though, it usually bounces back as long as you keep using your other cards normally and don't open a bunch of new stuff.

blairstone12d ago

Oh man, same thing happened to me with a Capital One card back in 2021. I paid off the last $800 on it and my score dropped 18 points the next month. It felt like a total punch in the gut because I thought I was doing the right thing. I even called them to ask what happened and the guy basically said the same thing about account closure and credit utilization changing. It did come back up after about 3 months though, so you're totally right about that bounce back. Still drives me crazy how the system punishes you for being responsible with debt.