Paying off debt

[Anonymous]

I recently paid off all but a fraction of my debt, what will this do to my FICO score ?

I paid off a  $45,000 HELOC and several credit cards amounting to about $30,000.  I closed all but 2 credit card accounts and kept my HELOC open ($0 balance) along with an installment loan on my kids car,  My revovling credit to debt ratio is around 4 % ,  my home is completly paid off with an estimated value of $175,000,  will this hurt my FICO score ? My FICO score was 707 before I paid off debt.

Message Edited by hayduke on 04-28-2008 04:23 AM

[Anonymous]

Actually, I was wondering the same thing.  I recently paid off my Mortgage and All debts except ONE cc.  My scores went down on all three bureau's by avg 7-12 pts.

Can figure this FICO system out~!!

[athensguy]

You shouldn't close your credit cards when you pay them off. Also, paying off your mortgage can lower your score by reducing your credit mix. If you pay off enough debt, it might not make as much difference as you might think because you could be "rebucketed" and considered against people with better credit than you were being compared against before.

[llecs]

Also try to show a reported balance of at least $1 on half of your CCs and you'll get a small score bump.