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Paying off Debt

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Regular Contributor

Paying off Debt

I am trying to increase my credit score and pay off all of my debit. I recently paid my truck loan off and a credit card. However, my credit scores went down. I spent 400 on credit and it is showing on my report. That didnt help but I am paying the full balance off. My utilization is high but all of my payments are on time. The utilization is reported at 93% but I am using less than half of my credit. One credit has zero balance and it more than I owe on the others. I had a chapter13, but it is more than seven years. My house does not show on my reports because of the ch13. What am I doing wrong?
Message 1 of 6
5 REPLIES 5
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Super Contributor

Re: Paying off Debit


@rudy wrote:
I am trying to increase my credit score and pay off all of my debit. I recently paid my truck loan off and a credit card. However, my credit scores went down. I spent 400 on credit and it is showing on my report. That didnt help but I am paying the full balance off. My utilization is high but all of my payments are on time. What am I doing wrong?

List your

1. loans, original loan amounts, and current balances, and

2. revolving accounts, credit limits, and current balances

 

Then we can give you an optimal strategy for score improvement

 


Total revolving limits 653000 (575000 reporting)

Message 2 of 6
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Valued Contributor

Re: Paying off Debit

Finishing your truck loan could affect it some as well but I agree we need more dets to help out Smiley Very Happy










Message 3 of 6
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Regular Contributor

Re: Paying off Debit

18,000 owe 16,000 loan bike
Revolving credit
1,100 maxed
1,100 owe 0
2,800 owe 300
500 owe 400
750 owe zero
500 owe 300
1200 owe 0
That it
Message 4 of 6
Highlighted
Super Contributor

Re: Paying off Debit


@rudy wrote:
18,000 owe 16,000 loan bike
Revolving credit
1,100 maxed
1,100 owe 0
2,800 owe 300
500 owe 400
750 owe zero
500 owe 300
1200 owe 0
That it

Just keep paying things down.

 

Probably the reason your score dipped is that when you paid off the truck loan, you removed something that was helping your FICO 8 scores, because it was a mostly-paid-down loan. It is probably only your FICO 8 and 9 scores that were affected. The older score models, such as the mortgage scores, wouldn't react as strongly, if at all.

 

The credit card being paid off didn't hurt your scores.

 

 


Total revolving limits 653000 (575000 reporting)

Message 5 of 6
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Community Leader
Senior Contributor

Re: Paying off Debit

The maxed out single card is hurting you. Pay it down to $950 ASAP to get it out of maxed territory to remove that score penalty. Do that first.

 

Second, pay off the pair of $300 balances and you may see another bump, as that will give you less than half of your cards with a balance, which FICO likes to see. Then just continue paying everything so that lower balances report each month. Over time, you'll fall through scoring thresholds for usage and your score will rise.



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TCL $86,900 | Agg. Util under 5%
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