Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Credit Scores
Profile Image

Question By

0 Contributions
0 People Helped
I just paid off several credit cards so why did my score go down?
The cards I paid off had only small balances so I paid them in full. Once I did that my credit score went down, why?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

All Responses

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
2 Contributions
3 People Helped


Helpful to 3 out of 3 people

Mine does too.  It seems the higher the balances ( but not TOO high ), the better my score is.  Every time I would get closer to paying off my total credit amount over all my cards, my score would go down, somtimes over 20 points.  But then when I would put something new on a card or two, the score would shoot back up.  My theory is that the credit rating agencies are in bed with the credit card companies, to scare you into using your credit cards.  If you are responsible and manage your cards appropriately, then you are punished with a lower credit score, but not enough to destroy you.  However, if you continue to add to your balances, within reason, you are rewarded with a higher score.  This boosts your confidence and gives you the false sense of security to go and spend.  Its really all a scam, I believe.  I hope someday they either do away with, or majorly revamp the credit rating agencies...and FICO.

Don't worry, you are not alone.

Reply by

3 Contributions
7 People Helped

You are right on the money. I have been studing CreditKarma very closely along with their articles. The big banks are in bed with the credit reporting agencies to force people to spend money, go into credit card debt, so thereby making all of us live a forever debt ridden stressful life to preserve the almighty credit score. Our credit score goes DOWN if we don't spend enough money to make the rich richer. That is utterly messedup people. Big business pressure all of us to get the score higher so we can live the American dream. People, people, the only ones living the American dream are the rich. The reast of us hace to spend more and more to get into a good credit score. Great, we have a good score but we are working our tails off, forcing mothers to work instead of taking care of their children, money issues destroying marriages,,,etc It is a scam America!!

6 Contributions
4 People Helped

Credit Utilization

Helpful to 1 out of 1 people

The reason why this happens is because 0% credit utilization is worse than 1% to 40%. So, if you have 30% utilization and then pay off the cards, your score will be slightly lower. However, if you keep your utilization at 0% on all cards, you can achieve the same high score. Just be consistent with having 0% utilization!

I hope that helps. Merry Christmas!

1 Contribution
0 People Helped

Paid off

I paid off my progressive insirance why did my score not go up. It has been over a month now.

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.