07/20/2026
So... can we talk about credit scores for a second?
As a Realtor, I often have conversations with buyers about how important their credit score is. Whether we like it or not, it plays a huge role in qualifying for a mortgage and getting the best loan terms.
But as a regular person? The system feels a bit like a scam.
My husband and I just paid off our house and our credit scores dropped. And not by an insignificant amount either.
And this isn’t the first time we’ve experienced negative impacts from good financial decisions.
When we bought this house 10 years ago, my husband didn’t have credit. He didn’t have bad credit, he just had no credit. He had been taught to save his money and pay cash for everything. So by the time we were ready to buy, he had close to $100,000 saved and no debt or credit history.
You’d think that would make buying a home easier.
Instead, we had to intentionally build his credit because having no debt and a large savings account wasn’t what they were looking for. 🥴
Now, fast forward 10 years, we make what most people would consider another financially responsible decision by paying off our mortgage... and our scores go down. What??
I understand why credit scores exist. Lenders need a way to measure risk and a credit score is one tool they use.
But I also think it’s fair to acknowledge how frustrating the system is. We have a decade-long history of on-time payments, have a healthy mix of credit, keep our utilization low, and literally just paid off one of the largest loans we’ll ever have and the system penalizes us for it? There’s got to be a better way, no?
Am I the only one who’s had a financially smart decision somehow hurt their credit score? I’d love to hear your experience. 👇
Katie Tom
NV LIC S.184459
Realty One Group Eminence
