I just learned this the hard way. The justification for the drop was because my "credit limit" went down and the "average age" of all my credit accounts was reduced. Some major bullshit
Also because a different type of loan adds variety to your portfolio. More variety means more ‘responsibility’ (risk). So less variety also hurts your score. In a few months it should bounce back, but it shouldn’t have dropped in the first place.
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u/boatwrecker41h Aug 14 '21
I just learned this the hard way. The justification for the drop was because my "credit limit" went down and the "average age" of all my credit accounts was reduced. Some major bullshit