Reader Question: Why Did Paying Off my Credit Card Drop my Score?

Credit Cards

Reader Question: Why Did Paying Off my Credit Card Drop my Score?

Reader Question: Why Did Paying Off my Credit Card Drop my Score?

Closing a credit card account will never help to improve your credit score. Credit scores give extra “points” for consumers who keep their credit cards open for a long time, who have high credit limits and who have a healthy record of using credit. You are less of a risk to lenders and creditors if you are currently showing that you can manage and pay credit cards on time.

What to do when you overpay your credit cards

Credit Cards

What to do when you overpay your credit cards

What to do when you overpay your credit cards

Letting the credit card company keep that $200 safe for me just didn’t seem right. So I called into the MBNA customer service line to see if I could get the credit returned to my account. After 20 minutes on hold, I gave up and tried calling again later that night. When I finally got through to a representative, a nice woman informed me that the $200 could be sent back to me via paper check at the end of my billing cycle. What a hassle. Instead, I decided to leave the credit on my account. I’ll use up the $200 balance over the next few weeks worth on groceries and other expenses.

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