paid off card and score went down?

[buchstaber]

I get this email from Turbo:

	Reno, you paid off an account
	Your TransUnion credit report shows you paid off your WELLS FARGO account.
	See where I stand
	Well done. This is exactly the kind of thing that will raise your credit score and get you more options in the future.    Keep on rocking, The Turbo Team

Yet my score instantly went down when I paid of the credit card.  What the heck is going on here?Seems so counterproductive and contradictory.

[tagteam]

---

@buchstaber wrote:

Yet my score instantly went down when I paid of the credit card.  What the heck is going on here? Seems so counterproductive and contradictory.

---

Paying off your entire balance every month is not reflected in your utilization rate or, ultimately, your credit score. The balance that is used to calculate your utilization rate is based on your last statement balance.

See https://www.bankrate.com/loans/personal-loans/credit-score-fall-after-paying-loan/

[buchstaber]

I had a balance for several months and was able to recently pay it off.  My credit core dropped immediately.  I can think of no other items that would have caused this.

[tagteam]

---

@buchstaber wrote:

I had a balance for several months and was able to recently pay it off.  My credit core dropped immediately.  I can think of no other items that would have caused this.

---

Except credit scoring involves complicated algorithms (as mentioned in the article). Read the article at the link below and you will most likely realize this scenario is not at all uncommon (it's also temporary).

https://blog.credit.com/2015/06/help-i-paid-off-my-credit-card-my-credit-score-dropped-119515/