Watched my credit score drop 50 points after paying off a car loan early

I paid off my 2018 Honda Civic loan in full last December thinking it would help my credit, and instead it tanked my score because the account closed and my average age of accounts took a huge hit - has anyone else had a similar surprise from paying off a loan too fast?

3 comments

3 Comments

viola_lopez301mo ago

Did you already have a credit card open before paying off the loan? I learned the hard way too but keeping a couple old cards active with small monthly purchases helped my score bounce back way faster than I expected.

amy_west1mo ago

Paid off my 2019 Corolla in 18 months and lost 45 points right after. I kept a small credit card open with a low balance and used it monthly to rebuild my mix of accounts. That bounced my score back up within 6 months.

reese_lee91mo ago

My credit score's basically a yo-yo and I'm just along for the ride.