New Here - Paid of 100% of Debt Today

[Anonymous]

Today I am offically 100% debt free. I used my a commission payment to pay off $8,000.00 worth of debt.

I signed up on this site in order to keep an eye on my credit score that is currently 744. This score does not reflect my recent debt payments. How much can I expect my score to improve? Thanks in advance!

[guiness56]

It is extremely difficult to predict what a FICO score will be.

Utilization, AAoA, credit mix, negative information, payment history are all factors in the score.

[Anonymous]

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@Anonymous wrote:

Today I am offically 100% debt free. I used my a commission payment to pay off $8,000.00 worth of debt.

I signed up on this site in order to keep an eye on my credit score that is currently 744. This score does not reflect my recent debt payments. How much can I expect my score to improve? Thanks in advance!

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When you pull your new FICO score, please let everyone know how you made out!

There's lots of folks here who will want to know how your utilization, number of accounts reporting a balance, and your FICO score have changed!

Congrats!!!!

[Anonymous]

Are you saying that you will have a 0% util once the creditors report? If that's the case, from all the research I've done... that could actually hurt your score, you may want to show at least 1-9% util to see the best scores.

Hopefully a High Acheiver will chime in and correct me if I'm wrong.

[Anonymous]

Thanks! I will let you know once I get an update.

My credit history spans 13 years. I have no bankruptcies, collections, etc. I have two *negative* marks as follows.

1. 30 days late *once* in 2006

2. 30 days late *12 times*  - paid off in 2006

[Anonymous]

Correct. I have $0 debt. I paid everything off.

[Anonymous]

I believe showing a 0% util will hurt your scores a little or a lot, not sure, I think you should make a small purchase 10-15 on ONE card and let that show on your report.

Again, hopefully a more knowledgable member will chime in.

[haulingthescoreup]

Congrats on the payoff, and welcome to the forums! Couple of questions:

1. Was the debt on revolving (CC, line of credit) or installment (car loan, student loan, mortgage) debt, or both?

2. How many accounts was the debt spread out over? --i.e., one car loan, 3 CC's, and a student loan versus just one CC

3. If any of the debt was on revolving accounts, what was your reported revolving util? (total revolving debt divided by total revolving credit limits)

I'm asking because installment debt doesn't affect your FICO scores as much as does revolving debt. And scores will also vary by how many accounts had balances out of your total number of accounts.

Your scores are great now, so you might not see a big jump, unless you had high revolving util. Also, if you allow every account to report $0, you will probably lose points. (Strange but true.) The same might happen if you wind up with no open installment accounts. Nevertheless, 0 debt beats FICO scoring any day.

[Anonymous]

The debt was (5) revolving credit acounts and (1) CA Tax bill. The ratio of my revolving balances to credt limits was 37%. Does that make sense?

[Anonymous]

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@Anonymous wrote:

The debt was (5) revolving credit acounts and (1) CA Tax bill. The ratio of my revolving balances to credt limits was 37%. Does that make sense?

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I would def say to make a small purchase before they report (since they were all relvolving accts) just to show somwhere 1-9% util I think a $15 purchase would be good enough, go buy yourself a blu ray or dvd that you've been wanting.