Loading…
23
Vent: my credit score dropped 23 points because I paid off a card too fast
So last Tuesday I finally paid off my $1,200 balance on my oldest card and felt like a champ, then checked my score on Friday and it went DOWN 23 points. Seems like having zero balance on that card made my credit use look dead, which is somehow bad. I called the bank and the guy basically said "yeah that happens, just use it a little each month." So now I'm buying one $8 coffee on it every month just to keep the thing alive. Has anyone else had a payoff backfire like this, and how long till it bounces back?
2 comments
Log in to join the discussion
Log In2 Comments
robins833d ago
Same thing happened when I paid off my oldest card, felt like a kick in the teeth.
7
alexe753d ago
A kick in the teeth is about right. I had almost the same thing happen when I closed a store card I'd had since college, my score dropped about 40 points in a month. What got me was that the card had a $6,000 limit and I never used it, so I figured closing it was harmless. Turns out the age of the account was doing most of the work, like @robins83 said about the oldest card.
7