is able to have multiple accounts, of different types, all with monthly payments, and always pay them on time is seen as a lower risk than someone who pays something all the way off and isn't managing that account on a monthly basis. The credit score isn't a reward for being responsible, it's a predictive way to see how well you can manage debt, and that prediction of risk is important if a company is considering loaning you money and giving you more debt.

Yes there are shades of gray - if you have 15 accounts and pay off 1, there shouldn't be more risk in loaning to someone with 14 accounts vs. 15. But it's all just math and averages to them.


>you should automatically jump 20 points when you pay off a
>major item like a car.