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Question By
Hheritagesftl

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Why did my score drop?
I have paid everything off and the accounts closed. Now my scores dropped very low into the red.
I don't understand why.

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Top Contributor
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Your question informaiton did not indicate the date of the pay off in association with the accounts closed.   You did not indicate if the pay off was in association to collections or current debt.  When you have current debt; you pay it off and it is closed, you will get a reduction as you no longer have that account to manage.   Closing current accounts does harm your score.   The closer you get to being debt free the lower your score goes.  The score is for managing current (the key word is current) credit.   If you want higher scores, you just need more debt.  Of course, getting debt will cause your score to drop again naturally.  If you are in the red, I believe a secured credit card is in your fugure.

Top Contributor
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You should not have closed all your accounts.  Now it shows that you don't have available credit.  Get a credit card and use it - keep your utilization at 10% for a fast rise in score.

Top Contributor
79 Contributions
95 People Helped

Also, read and learn about "credit age" and how it affects your score.  

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