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  • 4 years ago
What happens to my credit score after paying off debt?

What happens to my credit score after paying off debt?

What happens to my credit score after paying off debt? In this episode I share survey results that show debt-free people aren't worried about their credit score. FICO says what's in your credit score FICO says your credit score is based on the length of credit, new debt, the variety of debts, how much debt you owe, and your payment history on debts. In short, you need to borrow money for a long time. More than likely you will end up paying interest. I'd rather be paid interest than paying it. What is not included in your credit score What is not included in a credit score is your age, sex, religion, and where you live. These things are left out due to consumer protection laws that were passed to keep lenders from being biased or discriminatory.  The problem with a traditional credit score is that it is selective on what to include in the calculation of your credit score and is not a fair representation of your full financial picture. Why wouldn't these things be included when

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