this post was submitted on 20 Aug 2023
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[โ€“] CoderKat@lemm.ee 14 points 1 year ago (3 children)

It doesn't usually go down when you pay debt off. In fact, paying off all your credit card debt every single month is a great strategy that will get you a good credit score. And is ideal, because that way you avoid the high interest rates that credit cards have.

It also doesn't go down if you check it with sites like Credit Karma. I believe what you're thinking of is hard checks, which loan issuers use and they can slightly ding your score as they represent you about to get a new line of credit. Though honestly that part is pretty sketchy, since it applies even if you don't get a new loan.

[โ€“] cynetri@midwest.social 11 points 1 year ago (2 children)

It does go down if you pay things off early, though

[โ€“] Firemyth@lemm.ee 5 points 1 year ago (1 children)
[โ€“] crime@hexbear.net 6 points 1 year ago (1 children)
[โ€“] Firemyth@lemm.ee 1 points 1 year ago

Oh man- here I am having paid off every debt I've had early and never being punished for it. Guess your response of 1989 just really showed me.

[โ€“] ChronosWing@lemmy.zip 0 points 1 year ago

It most certainly does not.

[โ€“] crime@hexbear.net 11 points 1 year ago

I've got dings on my credit report for no debt lol. I get dings for not using enough of my credit limit and also for using too much. It's a stupid system that exists to measure how easily banks can fleece you.

[โ€“] phillaholic@lemm.ee 6 points 1 year ago

It's not about paying it off, it's about closing an account. When you pay a loan off the account closes, and that's where you get dinged. Paying off a credit card isn't a problem, because the account is still active.