When you pay off one of your debt do you know how much your credit score will go up ?
- Venita PeytonLv 61 decade agoFavorite Answer
It may or may not go up. If you have only a few debts, your score actually may go down in time, because your credit score is based on your ability to pay your bills by using credit.
Plus, there are other things that affect your score, such as too many inquiries.
- 1 decade ago
When you pay off your debt your credit score does get affected by going down at first but will rebound maybe 10-20 points. Remember if your paying off a credit card you don't want to close that card if it is less than 3 years old. The reason why your credit score goes down first is due to the activity that is on your credit history. Just like inquiries that you create scores go down. There are inquiries that do not have an impact on your scores.
If you have a credit card keep your spending limit to 35% of your credit limit. So if your credit limit is $500 spend up to $175. Anything over that will and can lower your scores. Another thing to remember is to let the credit card companies to raise your limit automatically not you making the inquiry.Source(s): Steve has counseled many people on credit and credit scoring in the mortgage industry.