We are often asked “what is the best way to boost my credit score”? Is paying off a debt do better than continue to pay off the debt? I paid off my car and now my score has dropped, what happened? It is different for everyone. It depends on what else is on your credit report and your payment history. There are other factors that go into your credit score, but these two are the biggest part. Here is an example of if paying off your car to buy a new one is a good financial decision. The National Foundation for Credit Counseling will walk us through this dilemma.