Credit Karma scoring isn't even remotely accurate. So don't worry about that.

Your score does move though when you pay off an account. It's no longer an active credit line so it factors into scoring less.

The people I see who have the highest credit scores typically have a couple of credit cards they've had forever (with no balance) and then lots of old accounts they've paid off.

I'm a mortgage broker so I see credit reports every day. I would tell you it's a lot smarter to worry about your portfolio and assets and to spend less time thinking about how to get lower interest rates when you borrow hoping to please some ridiculous algorithm.

Is that what this thread is about?

But it's simple. Pay your bills on time every single month. Keep your utilization below 50%. Don't close old accounts unless they are costing you money (charge an annual fee, paying interest on the loan like in the case of OP). Don't apply for too much credit all at once, although you recover from that quickly.

Seems like it. The guy is stressing over his Credit Karma score. The only thing hurting my credit score is that I went without using credit for a very long time so my accounts are very new.

You'll get that back over time. My oldest two accounts are only 8 years old, and I'm constantly adding new ones. I'm still able to get approved for prime rate for anything I want, so it's nothing to stress about too much, IMO.

Yeah, that's what I was thinking too. I won't be buying anything major for about two years anyway and it's not like I have a terrible score or anything. I made the mistake of giving away too much info on one of those credit sites and got bombed with mortgage companies trying to contact me. I think this stuff is about, as you said, just being responsible and thinking long term.

I paid off my house, car and credit cards and my score went down.

Below 50% is bad. Below 30% is good. Keep your revolving accounts below 30% or they turn into negative accounts.

I'm looking at this situation also. Say you go ten years (for instance) and the only thing you have is a single credit card that you pay off in full every month. Then at some point you want a loan that is small compared to the value of the house. Say a $30,000 loan when the house is $300,000+. Are you going to get screwed on the loan. Would it be better to take out a loan that is specifically against the house?

You probably will get told to go in the direction of putting it on your house, but I wouldn't. If something happened and you can't pay it no sense in losing your house over such a small sum...

but you still close an account when you pay the vehicle off...

ive never seen a bank give money on a new vehicle under an old loan account, but i havent financed a vehicle in years.

I was thinking that the accounts would be similar. I mean, obviously, you probably aren't going to buy another car right when you pay one off. But I haven't financed a vehicle in forever either.

the issue is you are still closing the original account, which dings your credit.

They dont want you to close it early, they want every cent of interest from you. Being responsible costs the lender money.

Congratulations.

You really shouldn't have much need for credit anymore, no? Wish I was in your position.