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Paid off my CC and my score took a beating :o/

Shaggz00
Member

Paid off my CC and my score took a beating :o/

Totally bummed.....

 

 

It was my only revolving account, which had been closed years ago for delinquencies. It took me almost 5 years to pay it off. Last month I had $500 left, and finally paid it off. I was soooo happy, but this month my TU score dropped from 650 to 614!

 

So my thinking kind of backfired... I was thinking that once I paid it off, I would immediately get another credit card to keep an account opened, but now my score dropped so low, I'm afraid I won't be able to get a decent credit card... I should have tried getting one last month! Smiley Sad

 

With no opened accounts, I can't imagine that I could get my score up anymore... Any guesses as to whether it would just drop more, or increase? Should I scramble for whatever CC I could get?

 

Thanks,

-Avi

 

... hmm, ok wait... I just remembered a secured credit card... Ok, well I am going to look into that, but I would still appreciate any input on my above questions. Thanks!!

 

 


Starting Score: 590
Current Score: (7/9/2010 - 638) 8/5/2010 - 650
Goal Score: 700+


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1 REPLY 1
RobertEG
Legendary Contributor

Re: Paid off my CC and my score took a beating :o/

What you did by paying the debt was both commendable, and terminted any possible legal action against you.

But paying a debt is not a FICO scoring issue.  FICO scores pior delinquencies on payment of debt, not subsequent payment of debt.

Payment of the debt on a long-closed account would have only one impact on your current credit score. It might have caused the elimination of its prior CL from your % util of overall revolving credit.  But if you have no other revolving accounts, you have probably lost all ability ot FICO to assess any use of revolving credit.

Future increase in credit score, I would agree with you, requries a basic foundation of at least one open revolving credit account.

 

 

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