Having Zero Debt Lowers Your Score by 7 points.
08-31-2012 01:50 PM
I knew this before, but every time I see it, it rubs me the wrong way.
I had a score of 803 on Wednesday. After a payment hit and caused me to have zero debt, my score decreased to 796.
Apparantly, Equifax (and probably TU & EX) give you extra points for being in debt. Having no debt, causes your credit score to drop by 7 points.
I don't think this is fair to consumers. It encourages debt. Your score should go up, not down, when you payoff all your debt.
Just my two cents.....