<prompt> Human: After paying off all my loans, my credit scored dropped because I no longer had loans, and the claim is having loans helps your credit because it shows you have the ability to manage them. Well, I recently took out a mortgage loan for my house, and wouldnt you know it, my score dropped again, because now theyre claiming my utilization is too high, meaning the balance is high compared to the original loan amount. Well gee, I havent even made my first mortgage payment yet, why the hell would the balance be low compared to the original amount???TLDR: paid off loans, penalized for it. Took out loan, penalized for it. Credit reporting is a scam.  <response>: Credit reporting is more complicated than most people realize - have you read the wiki ? 