i am trying to raise my credit score by paying off old debts, but it appears if i do, my score goes down. WHY?

Answer 1

Your score goes down because those old debts now show up with recent activity on your credit report. That puts them much closer to the top of the list, and the most recent items on the list have the most influence on your score. There's nothing more you can do. You have to wait for those items to age a bit. Then your score will increase again.

It is NOT true that requesting your own credit report lowers your score. The only kind of inquiry that lowers your score is the kind made by a prospective lender when you have ACTIVELY APPLIED for new credit.

For more info on debt management and personal finance in general, I subscribe to a free newsletter called "Your Money Plan" that you might enjoy. When you sign up you get a free e-book on personal finance and some spreadsheet templates to help with budgeting.

Answer 2

Here are the worst three things that can effect your credit score:
1) Paying off older debts first - By doing so, you limit your credit history. Its best to pay off newer debts, or higher interest debts first.
2) Derogitory statements like Chewing out debt collectors when they call.
3) Having more than 33% of your debt on any one thing. Creditors like to see a variety of debt spread out over many sources because it shows your ability to manage your debt.

These are the things that creditors never tell you, but ask any credit counselor. Try the link below. There is a small charge for their services, but they do a good job. Its worth it. Good Luck!

Answer 3

I have always heard that if you pay off a loan your credit score goes up substantially.
Stop pulling your credit report. Everytime you or someone else pulls it, that has a negative effect on your score. It makes it look like you are up to something if you have it pulled too much. I probably have mine pulled about once a year (if that) and have an awesome credit score.
Stop worrying about your score and just keep up on your payments and pay off what you can.

Answer 4

incredibly the only thank you to enhance your credit, is to coach which you will take care of your credit. As for the credit card challenge, merely get one cc and pay it off each and each month. you do not could placed 75.00 on it, merely 25 right here and 30 there. Then each and each month faithfully pay it off. this might help your credit, additionally repay previous debt and verify out your credit record. make beneficial there isn't something on there it incredibly is hurting your credit.

Answer 5

you get a zero (0) for every good payment and a one (1) for every bad/late/non payment!