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New Member
dennis3
Posts: 3
Registered: ‎03-20-2007

Re: This Is a New One

We currently are refinancing our home and paid off all credit card balances and in turn our score droped 12 points.  Is this because of the inquires or because of the  0 balances on our credit cards?
 
We have worked so hard to improve to see it drop was very dissapointing, is this normal and how soon will it raise again?
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: This Is a New One



dennis3 wrote:
We currently are refinancing our home and paid off all credit card balances and in turn our score droped 12 points.  Is this because of the inquires or because of the  0 balances on our credit cards?
 
We have worked so hard to improve to see it drop was very dissapointing, is this normal and how soon will it raise again?


Recent inquiries will drop your score. But paying off cards should increase your score. What was your util prior to your last payment?
New Visitor
Bull32
Posts: 2
Registered: ‎05-08-2007

Re: This Is a New One

I have found that paying off your cards entirely all at one shot will in fact hurt your score initially.  If you pay down like 75% or so is better.  I believe they say that 7 to 10% utilization is the average. 
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: This Is a New One



Bull32 wrote:
I have found that paying off your cards entirely all at one shot will in fact hurt your score initially.  If you pay down like 75% or so is better.  I believe they say that 7 to 10% utilization is the average. 



1-9% seems to be "the sweet spot".
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007

Re: This Is a New One



Tuscani wrote:


Bull32 wrote:
I have found that paying off your cards entirely all at one shot will in fact hurt your score initially. If you pay down like 75% or so is better. I believe they say that 7 to 10% utilization is the average.



1-9% seems to be "the sweet spot".



I better hurry up and charge something quick then.

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