Скачать или смотреть When you pay off your mortgage or your car loan, your credit score might drop a little.

When you pay off your mortgage or your car loan, your credit score might drop a little.

That’s completely normal, and it doesn’t mean you did something wrong.

You should still pay those things off, because being debt-free is always a win.

But here’s what most people don’t realize. If a credit card closes because you stop using it or you close it yourself to avoid an annual fee, your credit utilization changes.

Let’s say you have a card with a five thousand dollar limit and your total credit across all cards is thirty thousand. If you close that one card, your available credit drops to twenty five thousand.

Even if the card had a zero balance, closing it shrinks your available credit. That change can hurt your utilization ratio, and utilization makes up about thirty percent of your credit score.

That’s a lot of points to lose over one closed account.

Comment YT and I’ll send you the full video.

#GotCredit #TheCreditDude #CreditTips #CreditScore #FinancialEducation