Paid off CC bill and credit score dropped by 40.

[phonelady61]

my cousins and I both paid down my credit to 100.00 and our credit score dropped and someone told me to never paid it totally off because then you run the risk of losing the line of credit and also no one can see that you paid it off . also remember to pay your household bills on time as well cause that counts towards good credit as well if you pay before or on time . You will not believe how good your credit score will be if you pay your household bills on time as well .

[ChessieMom]

Originally Posted by jerseygal4u

Warning to everyone...keep a balance of 30% of total available credit with credit cards.
Pay a little more than the minimum due every month.
Do NOT pay them off.

My cc balance is 0.
I only have 1 credit card,and i only have a car lease i am paying on. No student loan,no mortgage.
I really though paying off the bill would raise my score.
You would think right?

Nope. My score went from 745 to 702.

I received advice from a credit repair company to do this:
I notice that my score got higher when i kept a balance around 30% of total available credit and paid it down.
I did that for a few months. Score went up by 60.

Then i read that others recommend that you pay off your credit card balances,and that would raise your score.

It does not.

I also notice that my score could probably be over 800,but Equifax,Transunion,and Experian keep saying that i am not utilizing enough credit and that they are recommending i buy a home,buy a car,or get another credit card.

WTH is going on?
It almost seems they WANT people to be in debt. Geez

What? That is completely WRONG. Clearly you have misunderstood something. These are all things that will negatively impact your score.

1. payment history – carrying a balance on your credit card, or missing a payment
2. any collection or bankruptcy recorded against you
3. outstanding debts – the limit on your credit card (is your balance close to your limit?)
4. account history – how long have you had credit?
5. number of recent inquiries made about your credit report
6. type of credit you are using – a mix of credit cards and loans

No way am I carrying a balance Uh uh. I pay my CC in full, every month. And my score is near 800.

[Gerania]

Originally Posted by phonelady61

my cousins and I both paid down my credit to 100.00 and our credit score dropped and someone told me to never paid it totally off because then you run the risk of losing the line of credit and also no one can see that you paid it off . also remember to pay your household bills on time as well cause that counts towards good credit as well if you pay before or on time . You will not believe how good your credit score will be if you pay your household bills on time as well .

No one can see that you paid it off? Trust me, someone can see.

What sort of household bills? Are you talking about utilities?

[clutchcargo777]

Forums like this remind me how successful the credit bureau's are at keeping the general populations ignorant as to what they do. It also amazes me how many people who don't know jack about the subject will offer up their opinions as facts.