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Posted: 10/12/2021 7:41:06 PM EDT
[#1]
Re-mortgage it. Problem solved.
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Posted: 10/12/2021 7:41:31 PM EDT
[#2]
Do you have any idea how credit scores work?
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Posted: 10/12/2021 7:42:07 PM EDT
[#3]
Well if it’s a low interest rate mortgage, it IS a bad financial decision
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Posted: 10/12/2021 7:42:36 PM EDT
[#4]
Quote HistoryQuoted: Do you have any idea how credit scores work? This. It’s a DEBT score, not just a credit score. No debt?? You not good. |
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Posted: 10/12/2021 7:43:53 PM EDT
[#5]
Gotta get you hooked on debt.
No debt = no score. |
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Posted: 10/12/2021 7:47:45 PM EDT
[#6]
Are you about to make a major purchase that relies on your credit score? It not, it doesn't matter if it dropped a little
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Posted: 10/12/2021 7:48:44 PM EDT
[#7]
Mine dropped 14 points this months for no reason. Nothing has changed in my credit since February.
14 points actually matters when you're at the score im at. I'm trying to build it back since my ex-wife wrecked it |
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Posted: 10/12/2021 7:49:42 PM EDT
[#8]
Quote HistoryQuoted: Re-mortgage it. Problem solved. RE-mortgage a paid-off house? I am not smart, but that sounds dumb. |
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Posted: 10/12/2021 7:51:14 PM EDT
[#9]
Why does it matter?
I could call my banker to have a loan tomorrow and he won't even run my credit. |
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Posted: 10/12/2021 7:51:39 PM EDT
[#10]
Quote HistoryQuoted: RE-mortgage a paid-off house? I am not smart, but that sounds dumb. Quote HistoryQuoted: Quoted: Re-mortgage it. Problem solved. RE-mortgage a paid-off house? I am not smart, but that sounds dumb. 
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Posted: 10/12/2021 7:51:53 PM EDT
[#11]
Really pisses them off when you don't owe more.
Its a game you can't win. FJB |
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Posted: 10/12/2021 7:53:06 PM EDT
[#12]
Why do you care?
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Posted: 10/12/2021 7:53:15 PM EDT
[#13]
Can’t have a credit score without using credit.
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Posted: 10/12/2021 7:53:24 PM EDT
[#14]
You are not participating in the system properly. This is a debt driven economy, therefore the creditors behave accordingly.
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Posted: 10/12/2021 7:54:38 PM EDT
[#15]
I wouldn't care.
I never intend to borrow money again after my house is paid for. |
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Posted: 10/12/2021 7:55:59 PM EDT
[#16]
Who cares about credit scores if you pay cash for everything.
It's a good feeling to have the house paid for, isn't it? |
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Posted: 10/12/2021 8:02:30 PM EDT
[#17]
Quote HistoryQuoted: Why do you care? |
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Posted: 10/12/2021 8:03:09 PM EDT
[#18]
Congrats OP. Don’t worry about a credit score. I hate debt, as soon as my house is within reach it’ll be paid for. About seven years from now.
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Posted: 10/12/2021 8:05:14 PM EDT
[#19]
Quote HistoryQuoted: Are you about to make a major purchase that relies on your credit score? It not, it doesn't matter if it dropped a little Home and auto insurance premiums are also based on your credit score. Depending on how much it dropped it may be worth getting a HELOC, using it for a decent-sized purchase once every few months, and then pay it off immediately so the loan shows as active/current but you're not paying interest. |
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Posted: 10/12/2021 8:06:07 PM EDT
[#20]
Quoted: I dont measure myself by credit scores. However I was shocked to see that after i paid my house off, my credit score dropped. Paying off a couple cards is nothing without a house payment. lets say 90 days. WTF FJB I paid off my car like 4 months ago. The next week I noticed my credit score had dropped. WTF! 
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Posted: 10/12/2021 8:08:54 PM EDT
[#21]
Those that run the economy want you to be a reliable slave, not a free person who can determine his own economic destiny.
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Posted: 10/12/2021 8:11:03 PM EDT
[#22]
 low key brag
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Posted: 10/12/2021 8:14:04 PM EDT
[#23]
We have one small low interest car payment with a year left on it and the wife wanted to know if I wanted her to pay it off, I told her no, not unless you want the bottom to drop out out of our credit score. Hell that's the only thing we have propping it up right now as everything else is paid-off.
Funny how that shit works isn't it?
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Posted: 10/12/2021 8:16:50 PM EDT
[#24]
I REFUSE TO ACCEPT A "CREDIT SCORE" FROM A GOVERNMENT THAT'S $30 TRILLION IN DEBT, NOR FROM THE LENDING INSTITUTIONS THAT PUSH DEBT UPON US.
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Posted: 10/12/2021 8:17:08 PM EDT
[#25]
Quote HistoryQuoted: This. It's a DEBT score, not just a credit score. No debt?? You not good. That is because they generally pay no interest for using the CC company's money. |
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Posted: 10/12/2021 8:18:13 PM EDT
[#26]
Good job, op.
Screw the FICO man, tell him to FO and die. |
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Posted: 10/12/2021 8:19:03 PM EDT
[#27]
Quote HistoryQuoted: Do you have any idea how credit scores work? I’m guessing it’s like the algorithm that rates vaccine comments |
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Posted: 10/12/2021 8:20:23 PM EDT
[#28]
Quote HistoryQuoted: Good job, op. Screw the FICO man, tell him to FO and die. Agreed. Screw them and their games. |
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Posted: 10/12/2021 8:21:34 PM EDT
[#29]
My credit goes up every time I leave around 600 and up for longer than 30 days on my credit cards. Goes down when it's paid down, mid 700's up to near 800's swings.
Credit kinda sucks, it's about being in debt. As long as I'm upper mid 700's, I'm starting not to care anymore. |
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Posted: 10/12/2021 8:22:30 PM EDT
[#30]
Quote HistoryQuoted: I paid off my car like 4 months ago. The next week I noticed my credit score had dropped. WTF! Quote HistoryQuoted: Quoted: I dont measure myself by credit scores. However I was shocked to see that after i paid my house off, my credit score dropped. Paying off a couple cards is nothing without a house payment. lets say 90 days. WTF FJB I paid off my car like 4 months ago. The next week I noticed my credit score had dropped. WTF! Then Trump got elected and the construction industry went crazy with new projects. Work went from slow to slammed. I caught up on BOTH loans and actually paid them BOTH off early. One a month early, the other 3 months early. Wouldn't you know, EVERY DAMN LATE PAYMENT is recorded in RED. Yet, nothing at all for paying it off early. |
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Posted: 10/12/2021 8:23:16 PM EDT
[#31]
Quote HistoryQuoted: Well if it’s a low interest rate mortgage, it IS a bad financial decision This. |
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Posted: 10/12/2021 8:23:22 PM EDT
[#32]
I mean, if you like your debt you can always go get some more
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Posted: 10/12/2021 8:24:23 PM EDT
[#33]
Yeah, I'd suspect paying off the loan caused a short-lived bump in credit score, then it fell because now you have no payments. If you've paid everything off, they can't tell how good you are at paying debts on time now. It's a bit fucking odd. You HAVE to have some debt in order to have a good rating.
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Posted: 10/12/2021 8:27:56 PM EDT
[#34]
Yep, paid off my house. Have 200K in savings not including money in a Roth.....score goes down....
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Posted: 10/12/2021 8:30:40 PM EDT
[#35]
Quote HistoryQuoted: Re-mortgage it. Problem solved. With current rates you should be able to make a lot of money off a mortgage |
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Posted: 10/12/2021 8:30:51 PM EDT
[#36]
It will come back up.
You don't need any debt to have a perfect credit score, you need credit. |
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Posted: 10/12/2021 8:32:04 PM EDT
[#37]
They penalized you because instead of paying it off you should have put it all in BTC. Did you learn your lesson?
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Posted: 10/12/2021 8:39:58 PM EDT
[#38]
Permanently closing a debt always reduces your credit score - and paying off a mortgage is a HUGE portion of most people's debt. The only thing paying off doesn't affect much is revolving credit, because in theory you will be aging off old debt and replacing with newer. It is a meter of how much money they can make off you in interest. Thankfully, they aren't truly negatively hitting credit for using a credit card and paying off monthly and replacing with new charges. I guess they look at people who do that as infusing cash flow into the system and allowing some money to be made off vendors in credit processing fees.
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Posted: 10/12/2021 8:50:41 PM EDT
[#39]
As I learned during the Great Recession, a house is just a place to keep your stuff, and a credit score is just a signal of how good a debt slave you are to the master.
Fuck the banks and the politicians they own. Best, JBR |
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Posted: 10/12/2021 8:52:25 PM EDT
[#40]
You say 6 figures like a house shouldn't cost at least 6 figures...... |
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Posted: 10/12/2021 8:54:32 PM EDT
[#41]
The financial savvy people will tell you to virtually never pay off your mortgage. I suppose it depends on how much money you make, if you're not paying taxes, the interest deduction doesn't do you a whole lot of good. But, yes, when you pay off a home or auto loan, your score goes down. It'll go back up fairly quickly.
Personally, I like not owing money on my primary home. |
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Posted: 10/12/2021 8:56:25 PM EDT
[#42]
So you closed out one of your oldest credit lines and you are surprised your credit score went down?
If you actually need to borrow money you'll be in a good place with debt to income. |
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Posted: 10/12/2021 9:05:07 PM EDT
[#43]
Quote HistoryQuoted: The financial savvy people will tell you to virtually never pay off your mortgage. I suppose it depends on how much money you make, if you're not paying taxes, the interest deduction doesn't do you a whole lot of good. But, yes, when you pay off a home or auto loan, your score goes down. It'll go back up fairly quickly. Personally, I like not owing money on my primary home. Financial people say it's dumb to pay off your 3% mortgage when you could keep that money liquid and earn more interest. Most will also recommend a 15 year mortgage to get good rates. With the new standard deductions the interest on an average home loan and other ordinary deductions don't even come close to being enough to itemize. |
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Posted: 10/12/2021 9:06:19 PM EDT
[#44]
They want you to be in debt. That is why your score dropped. However it is unlikely it dropped enough to matter.
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Posted: 10/12/2021 9:20:41 PM EDT
[#45]
All you need for good credit is a stack of credit cards set to pay off in full each month. Give it ten years and the record of good payments gets your score into the top tier. Doesn't cost anything and you can even get paid to do it.
I paid my house off years ago. Almost cash out refid last year, but the market didn't go as low as I wanted to make it worthwhile. |
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Posted: 10/12/2021 9:33:59 PM EDT
[#46]
With no house payment and no credit card balance, F your credit score. Amass cash or hard currency/liquid assets and finance your self. I was poor and by the standards of many here, I am still poor but own outright, a ranch worth upwards of 2 million, have only monthly bills and a fist full of money.
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Posted: 10/12/2021 9:47:35 PM EDT
[#47]
Credit score is a score of how profitable you are to creditors.
So you’re a guy that paid off a mortgage early? That means you’re more likely to pay off loans early, meaning less profit. Credit score goes down. Are you a guy that reliably pays all 96 payments on a 8 year car loan? Yeah, you’re pretty profitable in more ways than one, so credit score goes up. |
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Posted: 10/12/2021 9:51:11 PM EDT
[#48]
OP: credit scores are there to determine how likely you are to make your recurring payments on time. Nothing more. Creditors care about having a steady inflow of payments on their loans. They'd much rather have $500/month for 12 months than nothing for 11 months and then you pay $6,000 all at once, early....why would someone reward you for paying nothing for almost a year and then paying off the entire loan at once? You don't get bonus points on your credit score for paying something off, or for paying something off early. You get a good credit score with consistent, on-time payments, low credit utilization, and having accounts open for a long time.
I do find it funny that people say a credit score is measuring "how much money credit card companies can make off of you" when one of the largest contributors to the credit score is credit utilization, and you get penalized for having high credit utilization (aka: people who never pay off their credit cards and constantly pay lots of interest on them). 3 things are hurting you here:
You can complain about all it all your want to, and talk about "how it should be!!" (which is arfcom's favorite pastime), or you can read up on exactly what goes into a credit score, and play the game (if you even need a credit score at all). |
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Posted: 10/12/2021 9:54:01 PM EDT
[#49]
It happens. About the time I sold my house before last, the credit agencies listed me as dead.
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Posted: 10/12/2021 9:55:09 PM EDT
[#50]
dont be a credit slave
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