We recently had wealthy borrowers who needed a higher credit score to qualify for the financing they desired. Hence, we told them we were going to assist with a rapid re-score; we asked them to pay down a credit card balance to a very specific amount that our credit-software said would maximize their credit score.
Upon hearing this, the borrowers immediately paid the credit card down to zero. And now their post-rapid re-score score will be lower than it would have been if they had left the balance at $4,000.
Many borrowers mistakenly believe that a zero balance is better than a small balance when it comes to credit scores. In most cases, a zero balance is not better.
If a higher credit score is imperative, we suggest getting help from an expert before paying down account balances.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646
