topic Help! I just paid off $75,000 in debt with a $78,000 limit and my score went down?????? in General Credit Topics

Help! I just paid off $75,000 in debt with a $78,000 limit and my score went down??????

Anonymous — Sat, 17 Feb 2018 12:13:18 GMT

Help! I was using over 90% of my credit ad so I paid ALL of it off over $75,000 to increase my score. Well it went up a very small amount and now just fell like 20pts . I cant find any reason for it. I also had some credit cards lower the available credit , which also makes no sense to me but that shouldnt affect it as I had other cards increase the credit limit. Help! Any ideas! I am trying to get my score up. You would think paying off $75000 would be rewarded not punished

Re: Help! I just paid off $75,000 in debt with a $78,000 limit and my score went down??????

DollyLama — Sat, 17 Feb 2018 13:17:03 GMT

Keeping very low utilization under 8.9% of aggregate total credit lines is the threshold point. All zero balances on revolving takes a ding in your score, FICO does not like all zero balances.

You were lowered on some due to the extremely high utilization, it spooks creditors. Others seeing utilization start dropping rewarded your limits.

So in the best case scenario, is rotate cards at least every 2-3 months, you can sock drawer the others, but only let 1 card report at statement cut with the utilization written above, and the rest all 0 balances, can better lower, charge a tank of gas, or lunch.

You will see your scores bounced back when the first card reports at next statement cut.

I'm a bit surprised you were only dinged 20 points, that high line of credit with balances, should have dropped your scores much more than 20 points. Are you getting Vantage Scores from CreditWise, Credit Karma, Credit Sesame. If you had a Discover it would be a true FICO score on your statement per TransUnion. If you had any Capital One, those were Vantage scores from CreditWise.

Re: Help! I just paid off $75,000 in debt with a $78,000 limit and my score went down??????

Shooting-For-800 — Sat, 17 Feb 2018 16:45:45 GMT

Just use your favorite card for everything and pay it off each month AFTER the statement cuts.

I imagine it will go up more points than you lost.

"recent credit card use" seems to matter.

Re: Help! I just paid off $75,000 in debt with a $78,000 limit and my score went down??????

RobertEG — Sat, 17 Feb 2018 17:14:29 GMT

Did your updated report also include update of a delinquent account or a collection that showed the period of delinquency has extended?

There are often subtle changes even if no new derogs are reported......