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Jeffn2579

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After paying off my credit cards, why did my credit score drop

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Because you pay off your debts

Ya, it makes no sense, but thats how it works.  But in the long run, what brings you down now will raise you up later. 

Remember, the credit scoring system was created by the lending compaies and banks as a way to guage who was qualified to borrow money.  The system relies on your monthly payments to guage your spending patterns. Using algoritiums, the system figures out what your spending habits are over the last 2, 7 and 10 years. if your credit history is short or has a history of missed payments or other derogitory remarks, then your are scored more severly because of what has happened in the past. Once your credit history is established, i.e. over 10yrs and your good credit history ages, the algoritiums find patterns in your money management, then you'll be awarded scores on those.  Thats when changes like paying off debt won't have a negitive impact on your score. 

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Vantage nonsense I would assume. Check your FICOs I bet they improved from paying off your cards.

Now if you closed the cards after paying, that would explain the drop, but I am assuming that you didn't.

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