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Paying Off Mortgage? Your Credit Score May Drop!

3/3/2026

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Story summary
  • Paying off a mortgage can cause a borrower's credit score to drop significantly.
  • Lenders prefer a mix of credit accounts and a long credit history.
  • Terminating a mortgage can shorten credit history, causing a temporary dip in scores.
  • John Webb of Experian says lenders focus on overall affordability, and no mortgage payments may increase disposable income, which lenders view positively.