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asd843

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Is paying off all credit card debt bad for credit?
My credit score is over a 750 but credit karma says if i pay off all my credit card debt (less than $1500) than my credit score will drop down to low 740s is this true if so why?

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I don't know why that is happening on the Credit Simulator but having all credit card debt paid in full saves you the interest cost, and that is good.  I'd use common sense and not worry about the Credit Karma score because that is only an approximation, and is not reported anywhere else but here.

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Technically Yes

This could happen, but not as fast as I think the simulator thinks it would. 

Now without knowing all the facts, I'll do my best guessing on your situation and do my best to explain what is happening; essentially having a $0.00 balance on your credit cards isn't any good. For you and me it would be good, but to credit card companies it is bad. To them this means that either A) you can't manage money well enough to carry a monthly balance or B) they won't be able to make money off of you (through interest) in either case that means bad business for the credit card companies. So, in essence, this means that having a 0 balance on all of your 9 credit cards is bad. If you only had one or two and paid them off it might not have such a huge impact on your credit score, but because there are 9 its a pretty big swing. The best usage percentage to have is between 1 and 9 percent, but still pretty good if you can manage to keep it under 30%

Hope that made sense to ya and that I could be of some help!

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