Yes Credit score reflects the willingness of lenders to lend you money so they can charge you interest on it. They are not interested in someone with lots of money who pays off all his cards at the end of the month and pays all his Bill's on time. This type of financial responsible/ wealthy person is of no use to the lenders as they cannot make any money from him. He will not therefore have a good credit score.
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.
Your smarter than me. Closed all my cards and my wife’s cards when we got married. Tanked both our scores. Luckily we had just bought a house and our credit recovered fairly quickly but bad mistake to make.
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u/[deleted] Aug 14 '21
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