So my credit was a 540 ..ive never had alot of credit experience…but all i owed collections was a couple thousand so i took MOST OF MY MONEY AND PAID IT OFF…leaving $187 left!! I did it thinking it would help me so i could get assistance with my buisness and it dropped it 88 points! Some of the things i paid show up as deragotory remarks with a 0 balance i dont get it
@Cassandra - It might be worth it to talk to a credit counselor about this?? From personal experience, paying off loans will sometimes decrease your credit score, but it'll rise back up in a few months
Sometime piggybacking off someone who has already established credit will help boost ur score quickly
I would go and get a credit report from all three bureaus to see if you have any other items that are causing derogatory remarks.
540 is still a good credit score!
I actually work as a credit restoration agent and I have a lot of good info. But you should look at your credit report… you get a free one every year thru annualcreditreport.com but also if you use Credit Karma you want to look at the 6 factors for both credit bureaus they use and anything that's in red you want to direct your attention to. If you have questions please feel free to contact me directly. Moorecreditmatters@gmail.com
Paying off debts can lower your score. But building a relationship with some type of credit line and keeping it under 30% of the total available amount will help you increase your credit score. Long term credit cards or revolving credit lines are the best at this. Use them and pay it off.
There must be something else on your credit affecting it. Get a copy of your credit report from all 3 bureaus.
