08-19-2013 04:58 PM
Quick question. My Credit score has been hovering around 700 for the last year due to high credit utilization. I put a ton of improvements for my business on my credit cards and was carrying a balance of over 45k. I have not missed a payment in 10 years. My average length of credit is 8.9 years. My history is over 18 years. Multiple cards with over 10k credit line. I paid off my last car loan on time two months ago.
So I came into some money for well placed investments, and I paid all but 10K off of my credit cards on all my highest interest cards
I have no collection accounts.
I kept all the cards and have not cancelIed any.
I have one hard inquiry on my score from 3 months ago regarding a rental property I needed to rent.
So I figured that now that I have paid down 3/4 of my debt, all that could happen would be my score would go up.
I dropped 20 points after everyone started reporting back 0's and the remaining balances I carry on anything at all are 6K on an AMEX blue that has over 15K limit, and 4K on a citicard that has 12K limit
Why would my credit drop 20 points when I paid majority of my debt off. I can't seem to find an answer around here or on the internet. Did I make a rooky mistake by doing something as stupid by paying off my debt? How should I have done this, how can I fix it?
08-19-2013 07:03 PM
In the section of the report where it lists the reasons of what is hurting your score do the reasons on your current report different form your previous report. ? IE new or in a differnt order.
08-19-2013 07:27 PM
No the order is Identical. High Utilization, High Balance, etc... Funny part is that I went from having over 45K in debt and 78% utilization down to 10K with 15% utilization. This makes no sense to me. EX did the same thing and dropped me 25 points. This makes no sense. No Baddies what so ever on my record. The only difference between this and two months ago is that I have 35K less in debt. I Guess the Agencies want you to keep a high debt load?
08-19-2013 07:54 PM
Here is a link you might find helpful.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO