Paying of Credit Cards Lowered My Score??

[RonM21]

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@DoroLucky wrote:
That's it? Keep in mind the fico scoring model grades you on debt owed. So if you don't owe anything ($0 until) your score will drop. Next time leave a small balance on 1 card and you'll see the difference. Your score will bounce right back.

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+1

[Anonymous]

So I'm in the same boat... I've been trying to work my score back up after a short sale in 2010 and just got hit hard by paying down balances. I have:

• Chase card for $29k with a $2k blanace
• Capital One card for $10k with a $200 balance
• Auto lease for a $57k vehicle with a $7k balance
• Credit union line of credit for $10k with a $200 balance
• 20 year credit history

I paid down my CapOne, credit line and auto lease to $0. As a result, my score dropped by 20 or so points across all reporting bureaus, WTH? Do I need to go pick up another installment line?

[SouthJamaica]

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@Anonymous wrote:

So I'm in the same boat... I've been trying to work my score back up after a short sale in 2010 and just got hit hard by paying down balances. I have:

• Chase card for $29k with a $2k blanace
• Capital One card for $10k with a $200 balance
• Auto lease for a $57k vehicle with a $7k balance
• Credit union line of credit for $10k with a $200 balance
• 20 year credit history

I paid down my CapOne, credit line and auto lease to $0. As a result, my score dropped by 20 or so points across all reporting bureaus, WTH? Do I need to go pick up another installment line?

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If you have one installment loan that's mostly paid down,  one credit card account that's below 9%, and your other credit card(s) down to zero, your scores will be optimized.

[Anonymous]

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@SouthJamaica wrote:

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@Anonymous wrote:

So I'm in the same boat... I've been trying to work my score back up after a short sale in 2010 and just got hit hard by paying down balances. I have:

• Chase card for $29k with a $2k blanace
• Capital One card for $10k with a $200 balance
• Auto lease for a $57k vehicle with a $7k balance
• Credit union line of credit for $10k with a $200 balance
• 20 year credit history

I paid down my CapOne, credit line and auto lease to $0. As a result, my score dropped by 20 or so points across all reporting bureaus, WTH? Do I need to go pick up another installment line?

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If you have one installment loan that's mostly paid down,  one credit card account that's below 9%, and your other credit card(s) down to zero, your scores will be optimized.

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It's an installment that's paid off. I'm not sure how less oustanding debt has led to an optomized score that is much lower.

[Anonymous]

The same thing happened to me with a slightly  higher balance then yours.  It depends on your available credit. Below a certain reporting balance it amount it may reflect a 0% utilization. With 25,000 available credit you could carry a balance of up to $250 with only 1% utilization. Try carrying a higher balance of $50 to $250. Your score will bounce back once your above 0% utilization. I would not recommend going above 10% uti. I prefer to stay at 1% uti.

[SouthJamaica]

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@Anonymous wrote:

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@SouthJamaica wrote:

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@Anonymous wrote:

So I'm in the same boat... I've been trying to work my score back up after a short sale in 2010 and just got hit hard by paying down balances. I have:

• Chase card for $29k with a $2k blanace
• Capital One card for $10k with a $200 balance
• Auto lease for a $57k vehicle with a $7k balance
• Credit union line of credit for $10k with a $200 balance
• 20 year credit history

I paid down my CapOne, credit line and auto lease to $0. As a result, my score dropped by 20 or so points across all reporting bureaus, WTH? Do I need to go pick up another installment line?

---

If you have one installment loan that's mostly paid down,  one credit card account that's below 9%, and your other credit card(s) down to zero, your scores will be optimized.

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It's an installment that's paid off. I'm not sure how less oustanding debt has led to an optomized score that is much lower.

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When an installment loan is paid off one's FICO score usually goes down.

[Anonymous]

+1 When an installment loan is paid off one's FICO score usually goes down. 

Same think happen to me a last year...