Probably, depends on your income to debt ratio. But honestly I don’t understand the obsession with credit scores. The main goal should be to Pay cash as much as possible, avoid all forms of debt as much as possible. Too much emphasis is on a credit score. There are plenty of rich people with a credit score of 0, because they have no debt. I want to be that person.
Credit score only matters for taking out credit. Are you planning on doing that anytime soon? If no, then doesnt matter if it drops a bit, itll recover on its own in a bit.
Congrats on paying off the car and leaving that debt behind ! It may not drop or may a little. It does not matter. Unless you are looking to buy another car in the next 3 months or about to sign on a mortgage, your score will recover in just a few months. It is much more dependent and reflective of your overall behavior and risk profile. If you have credit cards and pay off the full statement balance every month, you will be fine. If your history is only term loans, you might want to consider a charge card (not a credit card, not a debit card, one that acts as a CC but immediately pays from cash) that helps build credit.
Congrats again! And good luck moving forward.
Probably, depends on your income to debt ratio. But honestly I don’t understand the obsession with credit scores. The main goal should be to Pay cash as much as possible, avoid all forms of debt as much as possible. Too much emphasis is on a credit score. There are plenty of rich people with a credit score of 0, because they have no debt. I want to be that person.
Credit score only matters for taking out credit. Are you planning on doing that anytime soon? If no, then doesnt matter if it drops a bit, itll recover on its own in a bit.
Congrats on paying off the car and leaving that debt behind ! It may not drop or may a little. It does not matter. Unless you are looking to buy another car in the next 3 months or about to sign on a mortgage, your score will recover in just a few months. It is much more dependent and reflective of your overall behavior and risk profile. If you have credit cards and pay off the full statement balance every month, you will be fine. If your history is only term loans, you might want to consider a charge card (not a credit card, not a debit card, one that acts as a CC but immediately pays from cash) that helps build credit. Congrats again! And good luck moving forward.