Ask Terry Questions credit score

credit score

By Terry Savage on July 01, 2023 | Credit/Debt

I have 3 credit cards that I either pay off every month or some of the time I will make multiple payments so I will not have any interest charged on any of them. My credit score has gone down by 7 to 8 points in the last month. Why is it going down when I pay these cards off each month?

Terry Says

A few points doesn’t matter much — unless your on the edge, and applying for a mortgage, car loan, or life insurance. Keep paying those cards down to zero balances, then charge and pay in full every month. That will keep your credit score high.
The formulas change, and having more “open credit”can sometimes change your score a few points. That’s not the real issue. Long held cards, plus regular payment in full, can really boost your score the most.

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