Asked by Natasha  |  Submitted June 20, 2018

If I pay off my current debt, will this raise my credit score?

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  Answers  |  1

June 21, 2018

A large portion of your credit score is driven by payment history, so paying on time and in full always has a positive impact on your credit score. Although closing your accounts after paying them off may seem responsible, it actually lowers your credit score by lowering the average age of your credit accounts and reducing your credit utilization (the amount of credit you use compared to the total amount you have available). Credit experts advise that you stay under a 30% credit utilization ratio to boost your credit score.

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