Paying Off All Your Credit Cards Will Drop Your Score!

Being debt free is a great feeling!  However, if you don’t have any credit card balances and your credit profile stays this way for a couple billing cycles your credit score could drop.

Here’s why:

  • Credit score cards need some sort of history to rank you.  If you don’t have a balance you don’t have activity.  If you don’t have activity you don’t have history.
  • Every score card has different requirements on how many active tradelines or accounts they need to score you.  Generally, you need 3 positive and active accounts to get a score.

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