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Posted in Paying Your Bills
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peglegpirate15

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What a Joke! Pay off credit card debt and score drops 20 pts. according to CK
Anybody know why my score would drop when I just paid off all my credit cards? My score was lingering around 680 and I could never get it to that 700+ mark so I said "screw it, ill pay off my debt" wrong! Score dropped badly. Im beginning to think the whole credit thing is a big ole pile of doo doo. Its very unpredictable in my opinion. I cant seem to find the right trend with any consistency. What am I doing wrong? Granted this all according to CK, but seems to me a good tell tale of what to come. Go ted cruz!!!

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Credit: It has it own way of doing thing

Look at it this way, 

Lenders want to make money...  They like seeing a small balance better than no balance.  If you owe nothing then they aren't making money.

If you let it ride (not use credit) you will see your score bounce back in a few weeks.  If you use it, you'll probably see it go up faster. 

Unless you actually applying for new credit, it doesn't effect much anyway.  You do want a good score for your insurance rates but that is very genertalized.

Creditor pay more attention as to which bracket you falll  into rather than your exact score. So as long as you don't drop out of the "Good" or "very good" range you should be ok. 

Your right it can be unprdictable.  Things that you would think would be good often lower your score. Things that you think would bring it down sometimes don't 

Best bet;  use your cards, Pay off each month. Open new credit only when you need it.  Let the rest take care of it self. 

Good luck

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