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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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Helpful to 2 out of 2 people

Same here. I lowered my debts quite a bit and my credit score went down. Why are you penalized for being responsible? It sure does seem like you have to be up to your nose in debt.  It makes no sense at all. Credit ratings are  a joke but so many peope like retailers use them to gouge you with high interest rates My score was 696 a few months ago now it's 678 depending on which credit bureau you view. Compared to what I've read here that isn't bad but that shouldn't have hapened in the first place. My credit score was in the 500's when I had a charge off bad debt and bankruptcy.  The charge off was cancelled and I had to pay taxes on it in 2013. The bankruptcy is set to fall off my credit at the end of October 2014. Makes me wonder how that wil affect the rating. Who knows.

1 Contribution
5 People Helped

Paid off car, credit score goes down

Helpful to 5 out of 6 people

I agree! I'm so ****ed! Its almost like you have to be swimming in dept to have a great credit score. I'm the only one working in my household and for years I have worked hard to get my score up. Finally got it to 692 last month, (Oct 2013). I paid off my car Nov 2013 thinking I'm finally going to hit 700, WRONG!!! My score went down 9 points! I'm military and move from place to place every 2 to 3 years. I do not own a home and I'm retiring in 2016 and tring to pay off all the credit cards and vehicles prior to retirement so I can purschase a house when I retire. However, if I continue to pay off things it seems my credit score will keep going down and I want be able to get credit to purchas a shoe box when I retire.

DO NOT pentalize me because I pay my bills on time and then pay them OFF! These are the good people. No wander the people of our Country is in so much dept, they have to STAY in dept in order to have good credit to have decent things. UGGGG!!

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1 Person Helped

So much for being a responsible adult

Helpful to 1 out of 1 people

I read all these stories and I can't believe it....same thing happened to me!  I emptied my entire savings to pay off a huge student loan debt that was gouging me in interest over the last ten years and here I am thinking that my credit score will jump up by 20 points....nope.  Instead it goes down!  Why do the people who are responsible with their debt and money get penalized when they pay off their debt?  It would make more credit sense to stay way the hell in debt than to pay it off, of course to the benefit of those organizations that are collecting thousands in interest payments over decades.  That's so messed up.  I've worked hard my entire life to keep good credit so I can buy a house and a car and anything I want for the future, but instead I get shafted for being responsible.  F that.

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3 People Helped

Bull crap

Helpful to 3 out of 4 people

I sold my house ( because my husband got relocated) also paid off home equity and car.  Getting ready to pay off my Harley. In 1 week my credit score went down 40+ points. The only thing different that it says on my report is that I don't have high enough credit limits. Wtf. I keep my credit card very small for a reason. I'm crying as I type this because I have been busting my *** to rebuild credit after an ex screwed me. Was just about to go from medium to good. I'm so stressed out. What can I do. This is very depressing because we are going to buy another house after this stint in this location.  How the hell will that happen when nothing I do is right.  

1 Contribution
5 People Helped

Helpful to 5 out of 5 people

Same thing happened to me. My score went from 724 to 631 for no discernable reason. None of my grades changed regarding the various credit categories. 100% on time payments. I emailed credit karma about this and they sent a response that was clearly a prepared blanket response that they send out to anyone with questions about their credit score. What a joke.

2 Contributions
11 People Helped
Most Helpful Response

Helpful to 6 out of 6 people

Got me. Every time my credit utilization goes down 1%, my score drops about 5-15 points! A couple months ago, utilization went UP 1% and my score rose 10pts.  No rhyme or reason to this, other than banking industry wishing to keep you in debt and paying the highest interest possible until death.  

Oh, and Credit Karma is no free service...they're financed by the big CC companies. Look at all the "offers" they put up for you.  Nice to see a "free" score, but its not worth much. 

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1 Person Helped

Helpful to 1 out of 1 people

I noticed that when you look at you "credit report card" when it shows a graph for account utilization that there is a 0% and that puts you at a "C" for your grade and then 1%-10% has you at an "A" for your grade.  It seems like if you have 0% it makes your score lower, but goes up if you keep it between the 1%-10%.  I am not sure, but I think you have to keep it at at least 1% to keep your score up.

1 Contribution
2 People Helped

Helpful to 2 out of 3 people

Same thing happened to me, i paid off some debt and my credit score went way down?? Dosnt make sence to me. I really dont think its a fair system and some how be changed. Who manages the credit rating system. Can it be changed by goverment? I think its a scam in its self to have a system like that.

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