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Author Topic: paying off loans  (Read 942 times)

mean123

  • Former member
paying off loans
« on: December 15, 2012, 07:01:43 PM »
hi, does anyone know why paying off loans quickly lowers your credit rating?? last week i owed 350 million in loans and was in 66th place on the credit rating chart. now I payed everything off and am 103rd in the chart even though i now have a higher turnover and higher profit. Anyone know why this is? Thanks

Aerlingus1916

  • Former member
Re: paying off loans
« Reply #1 on: December 15, 2012, 07:20:58 PM »
Hey!
The reason for this is that the bank loses their interest income from you. Also, it disrupts their 'schedule' ;)
Hope this helped :) Dont be afraid to ask another question too, we were all like that ;D

Aerlingus

Offline Sanabas

  • Members
  • Posts: 2161
Re: paying off loans
« Reply #2 on: December 15, 2012, 08:27:36 PM »
hi, does anyone know why paying off loans quickly lowers your credit rating?? last week i owed 350 million in loans and was in 66th place on the credit rating chart. now I payed everything off and am 103rd in the chart even though i now have a higher turnover and higher profit. Anyone know why this is? Thanks

Did your rating actually change?

The rank is irrelevant. If 50 airlines have an A rating, then 100 airlines have a B rating, there's no difference between the 51st ranked and the 150th ranked, and that order from 51-150 will be random, and change day to day.

Offline Mr.HP

  • Members
  • Posts: 2730
Re: paying off loans
« Reply #3 on: December 16, 2012, 06:36:21 AM »
Sanabas is right. The same with CI, 10 airline with 100 CI will be ranked from 1-10 differently everyday

 

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