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Question By
Johndoe19

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0 People Helped
Paid down debt, why did my score go down?
To be clear: I changed NOTHING about my report. No new anything, didn't close anything, didn't charge anything, didn't move, didn't inquire about anything, NOTHING WAS DIFFERENT about my report except 2 things:

1. I paid down...not off, down some CC debt. Limits did not change.

2. my score dropped from 747 to 707.


You heard me when I said nothing else happened right. Report was identical. NOTHING changed except my score.

Is the fact that I stopped using credit and just cash causing my score to lower? If so, it's not a measure of how likely I am to pay a debt....It's a measure of how good a "customer" I will be...a good interest payer.

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1 Contribution
36 People Helped

Eqifax Scam

Helpful to 36 out of 44 people

Just paid off my house, 7 years early on a 30 year loan. My Equifax credit score was 743 from 11 Aug to 7 Nov, now on 12 Nov my score dropped 102 points to 641 and all I did was pay off my house and get out of debt. On the other hand, my TransUnion score went up by only 2 points. Since we are pretty much slaves to the all mighty credit score what good is it if you have been paying off your debt on time or a head of schedule? And to top it off, these Equifax fools got hacked and millions of identities got stolen and their head CEO is happy about it. He says it's a good thing, because they can now offer us one (1) year of free credit monitoring and they will rack in the cash when people renew the credit monitoring from them. Like I said Equifax is a BIG SCAM!

 To tell the truth, I've stopped relying on Credit Karma scores. Dave Ramsey is right, get out of debt, have an emergency savings of 6 months or more and cut up all those stupid credit cards and above all live within your means! Pay cash for things, I just blew a used car salesman's mind this year buying a great pickup truck with cash. If I need to get another house loan after selling this one, I'll use the entire amount I get for this house as a down payment. Yes my score went down but it will not effect my chances of getting a loan. Talking to the bank manager explaining why the score went down helps a lot and that comes from my bank manager. The fact that you have cash in a savings account, you are not constantly overdrawing your checking account and you do not have any derogatory remarks or leans on your credit helps a lot. It gets better if you have a large deposit to put down on a new house too. As for me I intend to sell this house and pay cash for the next one if possible. I'm really disappointed in the way Equifax and TransUnion calculate credit scores and so many places that seam to rely on there scam.

1 Contribution
21 People Helped

Same Here

Helpful to 21 out of 22 people

I wish someone from Credit Karma or the "Big 3" credit unions would respond to this thread. If we are working hard to pay down/pay off debt, and our scores DROP, then why are we wasting our time paying on these debts?

1 Contribution
20 People Helped

You are not alone

Helpful to 20 out of 20 people

I recently paid off my student and car loans. My credit score jumped to 803, wooooo! WRONG! Within the next few weeks, i started getting alerts that my score was decreasing, now im at 735... WTH!!! I thought maybe my identity was compromised, so i did some research and from what i can tell, if you have no debt your score goes down. that is the only conclusion i can come up with. so ****ed!!!

2 Contributions
11 People Helped

49 point drop!

Helpful to 10 out of 10 people

Just for paying off a single 500 bal on 1 CC!   Yeah after reading all these other stories I'm convinced its a scam. I've watched my score now everyday for 4 years and it NEVER gets any higher than 627 no matter what I do. my CC companies are even giving me automatic credit increases.. and the Score goes DOWN

 Better to pay everything off, Cut up the cards, and pay cash for everything, No more looking at scores for me.

Reply by
Jobcoach01

2 Contributions
12 People Helped
Helpful to 12 out of 14 people

I'm done looking at scores too. Waste of time. So they WANT us in debt but not too much and not too little. SMDH

Reply by
Shutemdown

2 Contributions
14 People Helped
Helpful to 14 out of 14 people

Yes,  it is a scam! You are not alone. Credit card companies, student loans, mortgage companies, car loans ALL want you to be in debt...to a degree. They want to make interest fees off of your running balances. It's a legal scam. I paid off my car and my score soared down 25+ points AND I pay my credit card off the moment that I make a purchase with it. I just now checked my score and it went down another 10 points. Why??? because they want me to be in debt! They arent making any money off of me so they are going to punish me and then they report me as a bad customer to all three credit bureaus. All the old rules we were taught growing up, "pay all your bills in full  and make sure you pay your credit card off each month" DO NOT APPLY ANYMORE.. It's just the opposite. Now being late on your bills and not paying the minimum is a different situation. Another thing you frequently hear is how your credit score is only updated every 30 days...WRONG! It's updated every 7 days or less. 

I blame the three credit bureaus for allowing this! I really wish that our government would regulate them OR shut them down completley.

1 Contribution
60 People Helped

Same thing happened to me

Helpful to 60 out of 66 people

I was so excited that in the past year I nearly paid off all my student loans. Decreased my debt by over $15000. Thought it would help my credit score, but it just dropped a couple points. Granted that is not a lot, but I thought it would go up! This whole credit score system is a total scam that has all of slaves to credit card companies. It is total BS! I am actually shocked our country lets such corruption exist. You need a good credit score to get a decent mortgage rate...but you have to be in debt to do that....errr.

1 Contribution
41 People Helped

Penalized for paying on time?!?

Helpful to 41 out of 50 people

Can someone help me understand why on earth my credit keeps going down when the only thing I'm doing is paying my bills on time????? What the hell am I supposed to do to get my credit score back to normal?????   This is really ****ing me off and very frustrating.  And for absolutely no apparent reason that I can seem to make sense of.  Oh and forget about trying to talk to someone at one of the credit reporting agencies.  I think I might have a better chance contacting GOD than them.  Enough is enough, what the hell is going on and who the hell can I talk to about fixing this problem.  Why won't anyone get back to me about this.  I've sent several requests with supporting documentation and my credit score keeps going down.  Somebody please tell me why so I can try and fix it.  

1 Contribution
24 People Helped

Karma Krap

Helpful to 24 out of 30 people

Go figure.  I run my free credit score with this website and I'm told 792 and 802.  Well, you'd think with all the debt I recently dumped.  No, my actual score was in the 730s.  Keeps going down.  We're all fools for trying to be such outstanding idiots.  

1 Contribution
18 People Helped

I have a car payment and one credit card

Helpful to 18 out of 23 people

that's it.. wich have both been payed on time every month. My score was finally almost to 600 last month and I check today and my score also went down 40 points for NO reason??? Why would it go up so many months in a row, nothing has changed and suddenly drop?? Like everyone else here has said so much for being responsible. why do they have to make it so complicated when they'd be getting all our money either way? Just makes me sad that this is the way the world works and i hope you fix this ****

1 Contribution
17 People Helped

This is CRAZY

Helpful to 17 out of 18 people

I paid down my CC and continued to pay my car payment on time as I should, yet my score dropped almost 10 points. WHAT THE !!!! You can't win... it's all about the financial institution. 

1 Contribution
23 People Helped

Paid off house, credit cards and car

Helpful to 23 out of 27 people

I paid off all my debt at the end of December and my credit score dropped.  What a bunch of BS.  I worked hard and it took 25 years to pay off my home and all along I though wow my credit score is going straight up!? Wrong!  What a scam of a system.

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