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will my credit score go up if I pay off all of my debt
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Not necessarily

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First thing to know: the credit scoring systems do not like zero balances. They like low balances (between 1% and 20% total credit card utilization, with 5% to 7% being optimal). But not zero.

If you have lots and lots of credit card debt and very high utilization, to the point where it's damaging your score, your score will probably go up if you pay off those cards.

However, if you already have reasonable utilization and you pay the cards completely off, your score might actually go DOWN.

The reason for this is that the scoring systems don't measure how responsible we are or how well we're meeting our personal goals for getting out of debt. They measure how profitable we're likely to be as customers. And to be profitable, we need to have at least a little debt and manage it well.

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Helpful to 3 out of 4 people

yes your score will go up if you pay off your cards

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