by "Full of the sound of the Gran Fury, signifying nothing." (granfury)
Published 11/04/2017 at 01:17
by "Full of the sound of the Gran Fury, signifying nothing." (granfury)
Published 11/04/2017 at 01:17
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STARS: 0
I looked at my credit report today expecting to find a nice increase because I paid off a big loan (the car), but found just the opposite - a big red mark saying ‘ACCOUNT CLOSED’. WTF? I paid off a massive. multi-year loan without missing a single payment - isn’t that a good thing? I’ve paid off other loans and haven’t gotten dinged like this, so I fail to understand why I should be seemingly penalized for doing what I thought was a good thing...
"atfsgeoff" (atfsgeoff)
11/04/2017 at 01:30, STARS: 1
I don’t know what to tell you, except perhaps the bank reported it as a negative closure instead of being closed due to the loan being paid off.
"gmporschenut also a fan of hondas" (gmporschenut)
11/04/2017 at 01:45, STARS: 2
http://blog.credit.com/2016/02/why-your-credit-score-could-drop-when-you-pay-off-a-loan-136535/
"FTTOHG Has Moved to https://opposite-lock.com" (alphaass)
11/04/2017 at 06:47, STARS: 1
All sorts of things hat make no sense change your credit score. It’s so frustrating how much they impact our lives when they have so many flaws.
"shop-teacher" (shop-teacher)
11/04/2017 at 08:22, STARS: 0
That is freakin weird!
"for Michigan" (formichigan)
11/04/2017 at 08:40, STARS: 3
The credit score system is designed to keep you in debt. It gives you points for number of accounts, variety of accounts, and age of accounts. Meaning, conversely, that it penalizes you for paying off debt quickly and for keeping the number of banks you owe money to low.
"Nothing" (nothingatalluseful)
11/04/2017 at 09:23, STARS: 0
Installment loans don’t have as much of an impact as you’d think, unless of course you have missed payments.
"Wacko" (wacko--)
11/04/2017 at 09:26, STARS: 1
Well paying off a loan in one payment means the credit company gets less money from you from interest. That is why it’s not good to do that. Making them less money lowers your credit score....
This is credit 101.
"Full of the sound of the Gran Fury, signifying nothing." (granfury)
11/04/2017 at 11:29, STARS: 0
That’s understood, but this is a car loan and had a fixed term that was going to be paid off unless I was foolish enough to roll it over into yet another car loan. At the very least paying this off should have a neutral effect on my credit.
There’s no winning - if I make money for them by missing payments I get dinged. If I pay off the loan as promised I get dinged. And because of this negative mark I can’t get more credit to make them more money. Lose, lose, lose.
"wafflesnfalafel" (wafflesnfalafel1)
11/04/2017 at 12:14, STARS: 0
Time to get another loan! (Boat.. jetski... another car...RV...)
"Full of the sound of the Gran Fury, signifying nothing." (granfury)
11/04/2017 at 14:47, STARS: 0
But I can’t take out another major loan since my credit score went down. Unless I want to pay out the ass in interest rates, which is probably their plan.
"Wacko" (wacko--)
11/04/2017 at 17:58, STARS: 0
But you paid it off before the end of the term, right?
"Full of the sound of the Gran Fury, signifying nothing." (granfury)
11/04/2017 at 20:00, STARS: 0
Nope - right on schedule, 60 payments in 60 months.
"Wacko" (wacko--)
11/04/2017 at 20:02, STARS: 0
Then I don’t understand call them for an explanation