Paid off a chunk of credit yet score went down?

m1at1

I'd be suspicious of clearscore and whether they were dropping your score to get you to buy more of their products.

Also, consider that paying off large chunks of debt isn't great for creditors, it means they will get less money out of you in total because there will be an adjustment in the total amount of interest. Your debt is their asset - it puts money in their pockets. By paying it off early, they get less money out of you and the asset is lower value.

Mogie

Andy

I was the same, I'm looking to get a mortgage and my advisor said use your credit card and pay it off to boost your score. I did this only small amounts and cleared them and my credit went from good to now showing as poor aaaargh ... nothing else has changed no searches, no new accounts it's actually doing my head in.
It in my opinion must matter somewhat surely or why would my mortgage advisor advise me to do that?

Ben8282

Mogie wrote: »

Andy

I was the same, I'm looking to get a mortgage and my advisor said use your credit card and pay it off to boost your score. I did this only small amounts and cleared them and my credit went from good to now showing as poor aaaargh ... nothing else has changed no searches, no new accounts it's actually doing my head in.
It in my opinion must matter somewhat surely or why would my mortgage advisor advise me to do that?

You were given good advice. Why it is not working for you I don't know but it should be. Perhaps try using the credit card for larger amounts.

[Deleted User]

Mogie wrote: »

It in my opinion must matter somewhat surely or why would my mortgage advisor advise me to do that?

Your mortgage advisor was - or should have been - referring to either how a lender scores you, or to improving your credit file. Not your CRA score.

If he wasn't, and he genuinely believes in the validity of credit scores, you should seek a new broker.