Curious why did my credit score not improve, even though I paid off my debt and the creditors have reported it to the 3 credit bureaus.  My credit report indicates all the debts were paid off. Any advice is appreciated. Thanks

Wen Dee

Original Post

It could be a number of reasons, ranging from credit age to total amount of credit available.  My recommendation is to sign up for Credit Sesame, which helps me realize WHY my credit score is what it is.  Basically it's like a report card in addition to your credit score.

Each credit bureau is different as to when exactly they update your report. I recently got my credit report from all three and it shows that I still have some debts owed that I have paid off so I know it has not updated yet.

Give it some time and it should improve, mine usually updates around the first of the month.

Interesting. I am seriously contemplating debt consolidation. Someone suggested bankruptcy, but at 73, I don't think I feel comfortable with it. One of my main reasons to consolidate is that I will immediately go from $700+ in monthly credit bills and one loan to a more manageable $250-$300/month payment. The remaining money will allow for me to purchase a small car and insurance (the one thing I am desperate for), plus decent groceries. A car affords me more independence, and I have been driving for many years; don't want to lose my ability, skill, etc., at my age. I have one cousin who drove until she was 91!! 

My credit score has slipped since I acquired these cards, and I understand because I am attempting to pay them off and rarely use them, my credit score has lowered. So, I am kind of between a rock and a hard place. My SSA retirement income is about $1300/month; an increase since 3/19, from $965/month!! An error on the part of SSA, since 2011!! 

Given my situation, what other than bankruptcy and debt consolidation is out there for me? 

You are lucky that you qualify for debt consolidation loan. That is the option that I would take. If you file BK your interest on a new car loan will be 24% range and your insurance will be higher. It takes 4 years or so to start getting credit back on track after a BK. 

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