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Posted in Credit Scores
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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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7 Contributions
19 People Helped

Paid cc down to $4 and score dropped 45

Helpful to 5 out of 5 people

I had a 701 credit score with only two 300 cl cards. I played one of my cards down to $4 from $111 and my score dropped by 46 point's to 655. Everything I had read said decrease your amounts borrowed. It hurt me tremendously by taking there advice.

1 Contribution
52 People Helped

Eqifax Scam

Helpful to 52 out of 61 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
4 People Helped

Why?

Helpful to 4 out of 4 people

What is the purpose of paying off your debt if you're going to be penalized anyway? With this credit system, you are ****ed if you do and ****ed if you don't. I'm sick of my score going down and I'm doing everything to try to keep it up. Credit Karma is acting all hush-hush about why I and a lot of people are getting virtually punished for paying their bills on time.

1 Contribution
33 People Helped

Same Here

Helpful to 33 out of 34 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?

2 Contributions
22 People Helped

49 point drop!

Helpful to 21 out of 22 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
18 People Helped
Helpful to 18 out of 20 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
21 People Helped
Helpful to 21 out of 21 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
3 People Helped

Don’t pay debt or check your score!

Helpful to 3 out of 3 people

SERIOUSLY my score has dropped over and over when I am making early payments, and payments that are larger than the minimum amount due. I also haven't added to the debts in any way, ONLY DECREASED THEM yet my score keeps dropping. Why am I paying the debt down if it's just gonna ruin my score? We might as well die with the debt because paying it down doesn't help at all! It doesn't even say WHY the score has been dropping. I haven't had any late payments, and have been paying more than the minimum requirement for months. The only time my score was increasing was when I made the minimum credit card payment, then used the small available balance, and then paid the balance again. They want you to stay in debt, and continually only pay the minimum and then use it again. If you try to pay more and not use the card and get ahead, you will only be punished. 

1 Contribution
3 People Helped

40 point drop

Helpful to 3 out of 3 people

The whiole industry is a scam!.  Zero changes other than paying off 1 CC and almost paying off two others and in a week my score drops 40 points? Make no sense whatsoever and is just bull****!

1 Contribution
25 People Helped

You are not alone

Helpful to 25 out of 25 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!!!

1 Contribution
49 People Helped

Penalized for paying on time?!?

Helpful to 49 out of 58 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
63 People Helped

Same thing happened to me

Helpful to 63 out of 69 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.

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