📉 The Surprising Truth Behind Your Credit Score Drop After Debt Payoff Paying off debt is often celebrated as a significant financial milestone, and rightly so.

It frees up funds, reduces stress, and can improve your overall financial well-being.

However, many individuals are surprised to find that their credit score actually drops after successfully paying off debt.

This seemingly counterintuitive outcome can be perplexing, but understanding the underlying factors can help provide clarity.

📊 The primary reason for a credit score decrease post-debt payoff is the impact on your credit utilization ratio.

This ratio compares the amount of credit you're using to the total credit available to you. - https://lendinghelpguide.com/blog/credit-score-drop-after-debt-payoff/?unique_id_pk9karka

Understanding the Unexpected Impact of Debt Payoff on Your Credit Score