I paid a credit card down from $1700 to $1200. My score went from 795 to 763. Fuck 'em and their fake money.
A 35 point drop should either be a temporary blip, or a result of having practically no other credit.
A significant portion of your credit score is the average age of accounts. When an account closes, that is no longer accumulating time (this is also why you should just keep credit cards you aren’t using open, and if they have an annual fee, have the issuer change it to a free card if they can, I.e Chase Sapphire down to Freedom).
Another portion of the score is debt-to-limit ratio. If that goes from $250:$10,000, down to 0:0, you look a lot worse as a credit customer.
I don’t think that changes the fact the system is illogical and stupid though. It’s way too basic a system if that’s how they’re running it.
The system was built around the needs of the upper middle class and it suits them just fine. Someone earning $500k+ per year will have a whole lot of credit cards, loans, mortgages, etc. That diversity helps them generate the scores they need.
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