Received notification my credit score just dropped 40 points.


$100 Site Donor 2023
Nov 28, 2014
Steilacoom, WA
I have zero debt, and a 800+ credit score. Although I have zero debt, I do have a car loan just to keep a loan on my credit report, but it is under 3k.

My credit union just sent me a note saying TransUnion vantage dropped my score 40 points because I no longer have a secured rela estate loan. So, if one pays off their house, their credit score takes a hit.

This credit score stuff is just another wall street banker game to find ways to justify a consumer paying more for a loan.

I am getting to the point I am only going to pay cash for everything, and encourage my family and friends to do the same. I know a few are saavy enough to game the credit card and associated systems, but giving the banks a cut of every transaction a consumer makes ..... Has made the banks greedier than ever.
Are you a landlord? My friend's tenants didn't pay their utility bill on time. The utility company came after my friend without a warning or him being aware of what was going on. He found out his credit was affected by his tardy tenants.
No, just sold a home a few months ago, and no longer have a real estate loan.
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My father, was a child of the Great Depression and hated any debt. He also hated paying rent. So we lived in a very crummy neighborhood in a tiny dwelling that he paid cash for. I got mugged several times, first time at age 7.

When I got to be 11 years old, I was going to have to change schools to one with stabbings and real violence. So my father finally decided we should move to somewhere better. Because he had no debt and a good job, he thought he would have no trouble getting a mortgage. WRONG.

He also had no credit history. He had quite a time getting a loan, finally getting one from a bank he had a savings account at. You have your best shot at a good credit score by never paying anything late, having a lot of credit available, but utilizing almost none of it. And yes, paying off a loan can drop your score.
Mine flexes like that too. Up 40 down 40 - seems like it didn’t used to do this.

I just decided to ignore it as I have no need for a loan.
Our credit score is lower now than it's ever been. When we were young and up to our gills in debt our score was way, way, way up there. Now that we own everything it's dropped significantly. And just last month we got a letter from Sue's VISA saying they were going to lower her credit limit because she didn't use her card enough. WTH? What difference does it make to them?! We always pay our bills the day the statement arrives.

Like others have said, it's a scam played by the financial industry. But like Pablo says we have no reason to ever need a loan again. In fact, I think the system is so corrupted I question whether we'll even have access to our hard earned 401K/IRA money if the poop hits the fan.

For the purposes of obtaining credit lenders have tiers for credit scores - a +800 score dropping 40 points will have zero impact on your ability to get the best rate on loans. My score goes up and it goes down and it’s of little consequence to me.
Also, there are a million different credit scores all weighing different things. There are multiples for mortgages, auto loans, BS ones only sold to consumers, etc.
GON, Another option you have is to open a HELOC on your current property with your most recent lender. You dont have to use the credit but establishing it might raise your score.

Another option is to what lending options your brokerage account provider might have to offer you.
Ramsey: "I pay a higher car insurance rate because I have a zero credit score."
Well allrighty then.
His co-host almost says the quiet part out loud:
"I've never had any services that I wanted denied"
"Well not denied but-" [you had to pay more]
My credit score was 820 then dropped to 755 over a period of 3 years.

Nothing in those 3 years has changed or has been done differently, no late bills and my credit report shows nothing.

I do not have a loan though, best I can tell you get a good score from actually doing the right amount of bad things, doing everything perfectly is a demerit .

Moving to auto pay on my credit card seems to have been immediately followed by a 20 point drop in my score