It’s not like they want to punish you for paying off your car.
The reality is that a high percentage of the population loads up on more debt after paying off current debts, so the algorithm reflects that. Usually those points come back after a couple of months.
They can also fall for stupid reasons. I recently finished paying off my car and my credit score dropped by 6 points!
That’ll teach you not to participate in capitalism.
It’s not like they want to punish you for paying off your car.
The reality is that a high percentage of the population loads up on more debt after paying off current debts, so the algorithm reflects that. Usually those points come back after a couple of months.
That makes sense, even if it seems dumb to be “pre-punished” for something I’m not planning on doing.
This is only a brief fluctuation as the average age of your accounts decreases.