I recently checked my score and it was a 527. I paid all my credit cards off. Why didn't my score go up?

Asked by Pumpkin, Santa Fe, TX Mon Aug 9, 2010

Paid of 3 credit cards and closed them. I have 3 student loans not in default because I am still in school. I have 2 car loans in my name which are paid on time. I got rid of extra bills to secure a mortgage loan. Before I started school they told me it would not effect my credit if I got student loans, was this a lie.

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Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Mon Aug 9, 2010
What you should not have done was close your credit cards, but i don't think you will be able to open them again. Eventually, if you have 3 student loans that are being paid on time, and you have 2 car loans that you are still paying on, your scores should go up. Each account has to be paid on time every month. If you have any open credit cards, use them for a $10 charge and pay the bill immediately when you get it. This will help raise your scores.
0 votes
Bruce Lynn, Agent, Coppell, TX
Mon Aug 9, 2010
Score is based on a number of items....including on time payments and % of revolving debt used, and debt to income. Paying down cc that had small balances may not change your credit score much. Closing accounts could negatively affect your credit. Not sure about the student loans, but I think they are included in your debt to income ratios. Best to check directly with your lender to see what they need and what they count.
Web Reference:  http://www.teamlynn.com
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Aug 9, 2010
Difficult to render an opinion unless full credit reports are furnished, interview for more details, review of total debt owed.

If you pay of credit cards that were not past due AND close the cards will tank your credit scores. Best of kept the line of credit open.

It takes credit bureaus approx. 60 - 90 days update their files from credit pay BASED on when companies report for status updates to credit bureaus those files are submitted to bureaus once month only.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes
Jackie Rankin, Agent, Fort Worth, TX
Mon Aug 9, 2010
It might not have been a great idea to close your credit cards because now it shows that you don't have any credit. Great thing though to pay them off!! Way to go!

Lee is giving you good advice about talking with someone and having them help you with your credit situation. It sounds like you are on the right road. Good luck!!

Tru Value Realty
0 votes
Lee DeForke…, Agent, Galveston, TX
Mon Aug 9, 2010
I suggest that you contact one of my lenders that I use on a routine basis. They can help you prepare and resolve your credit issues. You are welcomed to give me a call and I will help. You are doing the right thing by resolving this first before trying to buy. My cell is 409-739-1299, Galveston. Lee DeForke Jr
Web Reference:  http://www.LeeDeForkeJr.com
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