Shoutout to the credit scoring algorithm that gave me a 780 after years of being stuck at 690

I finally paid off my student loans last month, which the system saw as a major positive, but it also dinged me for closing that old account and shortening my credit history. The final number felt like it rewarded paying off debt but punished responsible account management in a way a person wouldn't. Does anyone else think these models are too focused on predictive stats over real financial health?

3 comments

3 Comments

aaron_adams2mo ago

Exactly. It's a math problem, not a judgment on how you live. The system wants to see a long history of you owing money and paying it back like clockwork. Paying off a big debt and closing the account removes a reliable data point for them, so your score dips. It feels backwards because being debt-free is the real goal, but the score just measures risk for lenders. They'd rather see you keep that old card open and barely use it, which is kind of silly when you think about it.

mary_nelson712mo ago

It's basically a loyalty program for debt.

kai_webb912mo ago

Right? I paid off my car loan early last year and my score dropped 20 points. It was my oldest account by a mile. Now I just keep a card from college open with a single subscription on it, which feels so pointless.