Member
annalog
Posts: 46
Registered: ‎05-04-2011
Having Zero Debt Lowers Your Score by 7 points.

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.....

 

 

EX=800, EQ=814, TU=946