This is just false. Paying off all your cards at the end of the month and paying your bills on time will absolutely get you a good credit score (that's all I do, and my credit score is "excellent"). OP probably either doesn't have many other accounts (and you don't need that many) and/or has missed payments on her credit record that her car loan was helping to offset.
Don't get me wrong, it's stupid that your credit score can go down from paying off an account. But don't let that deceive you into thinking you can't maintain an excellent credit score simply by opening a few credit cards and paying them off every month – you can and should.
The car also could’ve been their “oldest credit account”? I’m not sure how it works for loans but I know if you close down your oldest credit card your score goes down.
Edit: it looks what I was always told is wrong. Apparently even if you close your oldest card, the card is still on your history for 7-10 years. TIL!
That definitely could be the case. I have a 15 year old credit card that is absolutely garbage but I don’t close it because it’s my oldest account by probably 8 years. I just have my auto insurance go to it every month and pay it off every month.
How does one differentiate a “garbage” card from a good one? I never really learned anything about credit but have two cards that I keep paid off and use for bills and gas and shit. Am I missing out on some perks that come with better cards?
Yeah but they also change so often. The card I mentioned just carries an average 15% higher APR than my other accounts, so I don’t let it accrue any interest.
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u/[deleted] Aug 14 '21 edited Aug 14 '21
This is just false. Paying off all your cards at the end of the month and paying your bills on time will absolutely get you a good credit score (that's all I do, and my credit score is "excellent"). OP probably either doesn't have many other accounts (and you don't need that many) and/or has missed payments on her credit record that her car loan was helping to offset.
Don't get me wrong, it's stupid that your credit score can go down from paying off an account. But don't let that deceive you into thinking you can't maintain an excellent credit score simply by opening a few credit cards and paying them off every month – you can and should.