FICO dropped after I paid off a debt
02-14-2013 02:44 PM
I'm so frustrated. I've been working on my debt for about 7 months. I started with a TU score of 515 and it's now at 678. But one week ago it was at 685. My "next step" listed on this site was to lower my debt as I had a car loan that was over 20,000 and "most high achievers have debt under $5000". So I took some of my down payment savings and paid off my car. So I have no debt now...and it lowered my FICO. I was trying to get it higher to get a better home mortgage loan. I would never have done that if the "next step" hadn't told me to do so on the site. Why would paying off my car lower my FICO - nothing else has changed? I have two credit cards with 0 balance and outstanding credit limit of $5000. I have nothing in collection. The only "bad" on my report are some old medical bills that went into collection in 2008 - but have been paid and one revolving credit loan my husband took out jointly that he didn't pay on for over 120 days - but I paid it off and it is closed.