Afraid to pay off any more of my debt.

[Anonymous]

I have been paying down my debt as my home closing date approaches.    I recently paid down several of my CC and paid off my truck. 

These items are starting to report.  The 1st of which was a $600 reduction on my Best Buy card.  

Dropped my score 7 points 786 - 779   I paid off the balance of 21k on my truck and 4500 on other cards.   Now I am worried it will futher drop my score and move me to a new higher interest rate.  

Credit ratings are random and a scam. 

[AverageJoesCredit]

Why not just wait til you close on your home before lowering debt? If your scores are as high as 786, you can afford to wait🤔

[RSX]

was the truck your only loan?  if so, your score will drop because of this

no way to affect it now, since it is done, but if you do have another loan - pay it down to 9% only - dont pay it off

[M_Smart007]

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@RSX wrote:

was the truck your only loan?  if so, your score will drop because of this

no way to affect it now, since it is done, but if you do have another loan - pay it down to 9% only - dont pay it off

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+1

[Anonymous]

Not my only loan,  i have one more loan that guess i will keep.  

The rub is my lender required these payoffs for get the the DTI ratio they wanted. 

Paid down over 80k in debt to have my score go down sucks. 

[RSX]

ok - if you can pay down your last loan to under 8.9%, you will see a score jump 

you are using fico scores correct? not vantage?

and look up AZEO for your credit cards - it is well documented on this forum 

these 2 moves will maximize your score, as everything else is good it sounds like

[SouthJamaica]

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@Anonymous wrote:

I have been paying down my debt as my home closing date approaches.    I recently paid down several of my CC and paid off my truck. 

These items are starting to report.  The 1st of which was a $600 reduction on my Best Buy card.  

Dropped my score 7 points 786 - 779   I paid off the balance of 21k on my truck and 4500 on other cards.   Now I am worried it will futher drop my score and move me to a new higher interest rate.  

Credit ratings are random and a scam. 

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Paying down Best Buy did NOT cause the point drop.

[Anonymous]

Once you get past the mortgage situation, finish paying off your debt and don't worry about score. Less debt is always better than more debt.

[dragontears]

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@SouthJamaica wrote:

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@Anonymous wrote:

I have been paying down my debt as my home closing date approaches.    I recently paid down several of my CC and paid off my truck. 

These items are starting to report.  The 1st of which was a $600 reduction on my Best Buy card.  

Dropped my score 7 points 786 - 779   I paid off the balance of 21k on my truck and 4500 on other cards.   Now I am worried it will futher drop my score and move me to a new higher interest rate.  

Credit ratings are random and a scam. 

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Paying down Best Buy did NOT cause the point drop.

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+1

@Anonymous how long ago was your credit pulled for the mortgage? Mortgage inquiries don't effect your score until the "rate shopping" period is over. 

[Yankee2]

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@RSX wrote:

was the truck your only loan?  if so, your score will drop because of this

no way to affect it now, since it is done, but if you do have another loan - pay it down to 9% only - dont pay it off

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I don't agree.

I had my only loan a car loan (balance $17,500 of original $22,800) I paid the rest off in one chunk. My score jumped 17 points (799-816)

I believe it has to do with total debt to credit dropped. (even though it doesn't affect credit card utilization)