Credit scores may drop after paying off debt like loans or credit cards because it can affect scoring factors such as credit utilization and mix of accounts.
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"Any change in your credit score after you have paid off debt is dependent on the reporting of the creditor," Panteli said. "Although they normally do so on a rolling basis, creditors aren't actually obligated to report anything to the credit bureaus." Not sure where you fit on the cred...
While a balance transfer can be a good way to pay off debt, it isn’t the only way. Borrowers have other options available to them if they want to pay off their debts. One alternative is simply to earmark more money each month to pay down yourcredit card balance. If you have multiple...
Paying off high-interest credit cards should be a priority in the current rate environment. Photo illustration by Victoria Ellis/Fortune; Original photo by Getty Images When you’re bogged down by debt, whether it’s credit cards, loans, or some combination of both, setting aside money to ...
That's blackmail. I would rather be debt-free than have a perfect credit score. Your credit score is certainly important when you're starting out and likely to borrow money for a down payment (首付) on a home or some other big purchase. But once you're fairly est...
Financial Goals:Consider your long-term financial goals. If you plan on applying for a mortgage or other loan in the near future, preserving your credit score might be crucial. However, if your primary goal is to achieve debt freedom as quickly as possible, debt settleme...
small credit card balance won't have a large effect if you have other significant credit card debt,” said Joel Klein, founder of Crafty Dollar, a digital money management platform. “It is a good idea to pay off a credit card, however, if you are doing it to raise your credit score...
She was supposed to be paying her debt to society, but as Naomi Campbell was walking to work for her community(社区)service she was the one being paid. Campbell, 36, has never looked so happy — and no wonder. Her five-day community service sentence in New York has served as the basi...
For some in the study with no other debt in collections, the erased medical bills did lead to a 3.6-point bump in their credit score, on average. The researchers were startled to find that for some people, particularly those who already had high levels of financial stress,...