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New Member
posted Apr 23, 2019 7:36:56 PM

Credit score Dropped

If i paid off over $1000 on a card, why would my score drop by 2 points ?

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1 Best answer
Alumni
Apr 24, 2019 8:52:09 AM

Credit utilization is one reason your credit score could drop a little after you pay off your debt. That's because it typically results in fewer accounts. The following has information on why a credit score would drop.

https://www.nerdwallet.com/blog/finance/credit-score-pay-debt/

2 Replies
Alumni
Apr 24, 2019 8:52:09 AM

Credit utilization is one reason your credit score could drop a little after you pay off your debt. That's because it typically results in fewer accounts. The following has information on why a credit score would drop.

https://www.nerdwallet.com/blog/finance/credit-score-pay-debt/

Level 3
Apr 25, 2019 7:34:24 AM

My score dropped 2 points last month and I did NOTHING. Technically, if I did nothing, the only change to my credit would be that my average length of credit increased slightly, which is good, but... Try not to pay attention to those tiny fluctuations. They're always updating their algorithms or shuffling people into different groups for one reason or another. 2 points probably had nothing to do with a payment you made. Think of it like a stock: it can bounce around a bit, but as long as it's overall track is up, it's good.