this post was submitted on 15 Feb 2024
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Who would you rather give a loan to? A person who you know is currently able to pay you back or a person you know was able to pay back the loan 10 years ago?
The person who just paid me back, because they can obviously pay me back.
Exactly, so that answers the question. When you finish paying your loan, you stop paying back money and thus your credit score is slightly lower than when you were actively paying back.
That's the opposite of my point. Let me correct myself here. The person who just *finished paying me back because they can obviously *make every payment until it is paid back again, as they have obviously demonstrated.
The grade dropped as soon as the account was closed, not ten years later.
So this is
And the answer would definitely be 2).