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chrismparkhurst

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Why did paying off my CC balances lowered my score?
Why did my credit score go down after I payed off the balances of my CCs? I had a utilization rate of 94%. I paid off the balances, and my score dropped 20 points! How can I be a bigger credit risk with 0% CC balances than I was with 94%?!

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Lenders will think you are not using your cards at all with 0% utilization which causes your score to drop. 1%-20% credit card utilization is key, it should yield you with the 2nd highest amount of points towards your credit score as it has the 2nd largest impact on your credit score. (counts for 30% of your credit score)

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