• dingus@lemmy.world
    link
    fedilink
    English
    arrow-up
    7
    arrow-down
    1
    ·
    edit-2
    2 years ago

    Why would paying off your student loans give you a credit hit?

    Edit: lol who is downvoting this I legitimately didn’t know the answer

    • yawn@lemmy.world
      link
      fedilink
      arrow-up
      5
      ·
      2 years ago

      Credit scores are in part based on the oldest line of available credit, which for most people are their student loans. Pay those off, your oldest line of credit becomes something more recent, and your score goes down as a result