I would mod you up if I had points.
Credit systems are a scam as Dave Ramsey says he has a score of 0 and would be denied renting a 1 bedroom apartment ... but could buy the whole complex in cash :-D. Read my last paragraph below to show how stupid this it with correlation = causation arguements to rig it? ... reality is very very few people can buy homes, emergency medical expensives and cars in cash.
Credit score = The % you are likely to pay someone back or your bills on time. No more no less. It is has nothing to do with wealth or success.
But in 2025 it is an evil necessity unless you are a millionaire. My Dave Ramsey example for those who do no tknow teaches financial literacy on youtube and is famous and hates all debt, but he is worth $160 million so can buy homes, boats, and cars in cash and his business. You and I reading this cannot.
Your credit score went down because you closed an account. Not because it was paid off. Broke people close accounts so therefore you are less likely to pay back with the whole correlation vs causation. It also impacts your debt/assets ratio. With less available credit available your other debt %/total available debt% ratio went thru the roof as it looked like you were borrowing too much, therefore you are going to default then those that don't. Again the causation = correlation arguement.
Go do some simple credit research on youtube. The proper way is get those ratios, account lenghts, and percentages in high, Keep ancient cards for lengthening credit history and keeping %total available debt% as big as possible so it looks like you aren't in over your head and over extended. Pay fees in interest for 3% to 5% of balances carried over to show you love debt and willing to have history and you will be good. If you rent be careful of broke neigherhoods as you are statsitically less likely to pay back if you live in X thanks to other broke people.