short comic

Why Paying Off Debt Can Surprisingly Lead to a Lower Credit Score

Follow Alex's credit journey and discover why paying off debt can temporarily lower your credit score.

Richard Walker

Richard Walker

— 1 min read
A cartoon person looking perplexed at their credit score on a computer screen
A cartoon person looking perplexed at their credit score on a computer screen

Have you ever experienced the confusion of having your credit score drop after paying off debt? Join Alex on his credit journey to uncover this surprising truth.

A cartoon person paying off credit card debt triumphantly

Panel 1: Alex celebrates paying off his last credit card debt, feeling like a financial rockstar.

A cartoon person checking credit score on laptop with a confused expression

Panel 2: Alex checks his credit score expecting a boost, only to find it has plummeted instead, leaving him baffled.

A cartoon depiction of a credit score rating graph with a dip

Panel 3: The credit score graph shows a sudden dip, and Alex is bewildered, thinking, 'Why punished for paying off debt?!'

A cartoon character reading a financial advice book

Panel 4: Seeking answers, Alex reads up on credit scores and learns about credit utilization and account age.

A cartoon character feeling enlightened with lightbulb overhead

Panel 5: Enlightened, Alex realizes credit scores are nuanced. It's about the long game, not just debt elimination.

Remember, maintaining a strong credit score is a marathon, not a sprint. Have you experienced unexpected credit score changes? Share your story below!

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