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Question By
Rebellis

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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?

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Ditto

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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
klinger63

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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!!

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Credit Utilization

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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!

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Paid off

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

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