Woman looking upset(l+r), Hand holding credit card(c)

Joshua V/Shutterstock @matixxjo/Tiktok (Licensed)

‘It’s almost like you’re getting punished for getting out of debt’: Woman questions why credit score went down after paying off card

'Everything is a joke.'


Amara Thomas


Posted on Feb 15, 2024   Updated on Feb 14, 2024, 10:55 am CST

A woman questioned America’s credit system after paying off her credit card, only to have her credit score negatively impacted.

In the 5-second video, TikToker Mati (@matixxjo) faces the camera as the following text appears on screen: “Wanna talk about a SCAM? I just paid off one of my credit cards and my credit score went DOWN.”  

What Mati experienced is not uncommon. Her video has over a million views and thousands of comments. Many viewers related to Mati, sharing similar experiences of their credit score dropping after paying off their debt, assuming the opposite would happen. 

“I paid off my car. Fully paid off. So proud. Credit score drops 30 points,” one viewer commented. 

According to Nerd Vallet, it’s not uncommon for your credit score to be affected when paying off your debt in America because your credit score is based on “other factors that credit-scoring formulas take into account.” Including the average age of all your open accounts, the types of credit you have, and credit utilization—the percentage of available credit that you’re using. 

While you may pay off and close one credit card, you now have one less account, affecting the types of credit you have and you lose that account’s credit limit, causing your other balances to represent a greater percentage of your total limit.

It may be a major feat to pay off your credit, but it is still important to stay on top of these other factors that impact your overall credit score. Viewers of Mati’s video shared in the comments tips and tricks on how to stay on top of these factors. 

@matixxjo Americas credit system is a fucking JoKe and a half #fyp ♬ queen of disaster with sparkles – ˚ ˚。° ⋆♡˚🎀 ꒰ ྀི ◞ ˕ ก ꒱ ⭐️

“Hey! Tip, always leave $30 on the card and only spend 25% of your max limit. I’m turning 21 and have almost 800 credit score,” one shared. “I put subscriptions on my credit card. Make sure it utilizes less than 30% and pay it off every month. Your credit will skyrocket,” another viewer suggested. 

Some viewers like Mati find America’s credit system frustrating, as she wrote in the caption of the video, “Americans credit system is a fucking JOKE and a half.” One viewer related to Mati’s sentiment. “America really has NO reason to be giving US a credit score lol,” they shared. 

The Daily Dot reached out Mati for comment via TikTok. 

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*First Published: Feb 15, 2024, 12:00 am CST