Credit scores. It goes up when you have more debt and goes down when you pay your debt off, but it goes down if you ask for a loan and it goes down if you even try to check what it is.
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.
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.
Our credit system must work differently here in Australia, because the only thing I think brings it down is not paying, defaulting, bankruptcy, etc. I have an excellent credit rating and I’ve had debts for years.
Credit scores. It goes up when you have more debt and goes down when you pay your debt off, but it goes down if you ask for a loan and it goes down if you even try to check what it is.
Absolute nonsense.
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.
It does go down if you pay things off early, though
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.
Our credit system must work differently here in Australia, because the only thing I think brings it down is not paying, defaulting, bankruptcy, etc. I have an excellent credit rating and I’ve had debts for years.