I recently made the final payment on my student loan...nothing has defaulted or been late. Now all of a sudden my FICO score dropped 20 points due to this change. It lists the debt as zero balance with no past due payments. Should this have happened?
Yep, this happened to me too, except it was 30-40 points across the bureaus. It's been 6 months and I still haven't quite recovered yet. I had to remind myself that being debt-free is far better than being credit-worthy. After all, who cares about how much borrowing power you have (what a credit score essentially is) if you don't have to borrow?