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elation88

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Credit Utilization drops as well as my credit score
Please advice. I have not done anything to my credit report as I am trying to apply for a student loan. So I decided to tackle some old credit cards and pay them off. I have 2 CC that are in collection. I have a 161% credit Utilization. I am in the middle of paying off one and came across some money and decided to pay the other one in full. Next time when my score was updated. I noticed that my credit utilization is now at 100%. I paid in full one credit card which it says in the remarks Paid Charge off. And on the other account I got it down to 100% credit Utilization. With that being said my credit score went from 601 to 548. I was thinking that my Score would stay the same or improve a little. I wanted to show when I apply for my student loan that I show some responsibility and pay back my debts. Any how, so my credit utilization percent goes down 61% and my score drops 58 points as well. Please advice me what is going on and why this happen. Thank you.

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As always, to determine the cause(s) of any scoring change you have to carefully review reports from before and after the change.  We do not have access to your reports and cannot answer your question for you.

If you're at or over 100% utilization I wouldn't expect any improvment.

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