Ok folks. I’m finally trying to be an adult and fix my credit. I’ve been paying down debt and have signed up for apps like Digit, Truebill, and Credit Sesame. I have called and made payment arrangements with most of my debtors. I recently got an alert saying “Great! You’ve paid down your debt! Keep going!” And then, my score dropped 45 points! Grrrr! I paid off another account and it dropped an additonal 28 points! I’m not understanding why this is happening, except for the fact that my utilization is over 50 percent on my 2, low balance credit cards. Any ideas? Thanks in advance.
When I paid off my car loan my score dropped as well. But dont worry about your score if you are paying interested on debt. Thats the more pressing issue. Congrats on your steps to getting rid of that bad debt though. You are heading in the right direction, regardless of what a credit scoring model says.
My score a year ago was in the 500 low range. I use the site credit karma for looking at score and other stuff. I got myself a secured credit card for $200 and my score dropped. Frustration set in more ever time I paid a bit more of my debt away. I don’t even look at it anymore.
When using credit cards don’t use a lot of its money and always pay back in full. Your score will go up
