Question

My fiancé and I are just starting the process of qualifying for a mortgage. I checked equifax a couple weeks ago and had a “good” credit score. I then paid off a credit loan I’d used for school in full and I checked the credit score my bank has and my credit score is 80 points lower! Which puts me in a different credit score bracket. What happened? Am I going to be in big trouble here with us now qualifying for a mortgage?  

Answer 1

Not necessarily. Many lenders also consider your debt to income ratio to be a superior factor rather than just credit score. Your score will recover shortly.  

Answer 2

It should come back up. Can’t say how long it will take. Could take a month or several. My credit took a bit tank when I paid off my car but it has recovered by a few months later. I can’t wait until I am fully u leased financially from my ex husband because he made my credit score drop y 80 points in one day. I am still about 20 away from recovering from his bad decisions.  

Answer 3

It always goes down like that when you pay something off . It will go back up

Answer 4

It will go back up; however, if you are about to put in paperwork, then don't do anything that will drastically change your score. Don't payoff anything or change jobs/income. Once you put in your application, they will qualify you and any major changes will require them to re-run everything.  

Answer 5

If you've started working with a lender, don't pay off anything without talking to your mortgage broker.