Fed Warns Credit Scores ‘May Lose Some Power’ After Covid

By | May 20, 2021

  • May 20, 2021 at 8:50 am
    Rosenblatt says:
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    Credit scores are so crazy. So if you didn’t pay your mortgage due to a C19 forbearance, you MAY see an increase in your credit score. But I paid off my oldest credit card debt and my score decreased because the age of my oldest line of credit went down. You’d think paying off your debt would increase your credit score (due to a lower debt-to-income ratio and more available credit), but nope, I got penalized for doing that. So crazy.

    • May 20, 2021 at 12:32 pm
      SWFL Agent says:
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      Makes you wonder if the agencies need to use data from a longer period of time for person in your financial situation/age group. Example – you always paid your mortgage on time and now home is paid off. Same with CC’s. Maybe you don’t need as many CC’s if you’re retired, etc.

      • May 20, 2021 at 4:41 pm
        Rosenblatt says:
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        Definitely agree the scoring algorithm could use some changes. Wish it was just as simple as going back further, but that wouldn’t have fixed the reason my score decreased after paying off debt.

        I mean …. if you pay off debt, you should be rewarded with a higher score. It doesn’t even really work that way right now!

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