re: WTF?? My credit score went down 35 points

As Dave Ramsey says, “A high credit score is an I love debt score”. That doesn’t tell the whole story, but there is some truth to it.

I just bought several cases of Haribo gummy bears on Amazon using Affirm and mine went UP 35 points.

It’s part of the credit equation. You need open lines of credit. It’ll go back up pretty quick after it drops.

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More importantly, it says you honor your commitments.

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If you have zero debts and owe nothing to anyone your score will be 0. I would not feel comfortable in that position. I’d have some credit opened to keep my score high. Dave is a multimillionaire and he doesn’t care.

My goal is to not have a credit score.

Mine went down 50 when i paid off my first house and back up 50 when i bought my duplex. 820 when i bought the new car 2 weeks ago, she said it was the lowest of the 3.

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I just bought several cases of Haribo gummy bears on Amazon

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Imagine if you were to have bought the three wolf T-shirts. Even wearing those shirts makes everything better

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doublecutter

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Pay your bills

Quick Credit Score Tutorial

First - There are three credit bureaus: Equifax, Experian, and TransUnion

Second - Credit bureaus and lenders use a variety of scoring models depending on the loan purpose: FICO Score 2, 4, 5, 8, 9, and 10; FICO Auto Score 8 and 9, FICO Bankcard Score 8 and 9, VantageScore 3.0 and 4.0.

Thus, you don't have just one credit score. You have multiple credit scores with each credit bureau, and different lenders use different scores.

Third - The scoring models weigh different factors, but nearly all use the same five factors:
1 - payment history (35%),
2 - amounts owed / total credit available = utilization (30%) ,
3 - length of credit history (15%),
4 - credit mix (10%), and
5 - new credit inquiries (10%) (hard credit inquiries only, not soft credit inquiries).

When you close a loan by paying it off, your credit score usually goes down for two reasons.

First, it reduces your credit mix (Factor #4). Pay off your car note, and you no longer have auto debt. Pay off your mortgage, and you no longer have mortgage debt. The scoring models value a mix of debt.

Second, paying off a loan usually increases your credit utilization (Factor #2). As you pay the loan down, the balance of the loan is usually low compared to the original amount, especially as you get to the end of the loan. For example, if the last payment is $500 and the original loan was $50,000, the debt utilization is only 1% on that loan. Your other loans probably have much higher debt utilizations. When you pay off that loan, that low debt utilization loan is no longer calculated with your other loans, so your debt utilization goes higher and your score goes lower.

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nd it never matches what your score shows when they actually pull your credit.

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because there's no single system used. Everyone uses their own parameters, including the businesses that are "tunning your score" in order to decide whether to give you any assets you are asking them for.


Each company is just looking at your publically available financial history to help them make determination and then assigning random numbers to show you why they said no if that happens by chance.


my score was different at 4 different car dealerships in the same day. one day, 4 dealerships, 4 vastly different scores. None of their scores matched the 3 companies used by Capital One.

It's all a scam.