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!

Question

Posted in Paying Your Bills
Profile Image

Question By
MsBrie89

0 Contributions
0 People Helped
If I pay off a debt will it effect my score in a positive or negative way?

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
2023 Contributions
3849 People Helped

depends on the type of debt

if its a credit card, this would raise your score.  If its a secured loan such as a car loan, then your score drop a few points, basicly because it will lower your available credit .  

if you are plannig to pay off a debt and your current CR is in good shape and your score is around 700, then apply for a new line of credit or new credit card just before paying off that loan.  That way you'll have a new line of credit in place when the old debt is paid off. 

If your not planning on any new credit right away, it will lower your score for a while, but it should bounce back after a few months if everything else is in good shape on your Credit Report. 

Good luck 

Result 1-1 of 1Results 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.

SIGN UP NOW

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.