How much does your credit score improve when you pay off a credit card?

Paying off credit card debt can give a nice boost to your credit score; however, the exact improvement will depend on your specific credit profile.

In general, clearing a credit card balance in full can increase your credit score by anywhere between 10 to 50 points, provided all other factors remain the same. The higher your debt amounts and the longer your credit history, the more your score is likely to improve.

That's because the credit utilisation ratio (amount owed compared to credit limit) is a key factor impacting your score. Paying off debt lowers your utilisation substantially, signalling better creditworthiness.

Also, on-time card payments are reported, which builds your credit history. Even after the payoff, keep the card active by making small purchases and paying off fully every month. This will maintain a positive impact on your score.

However, just paying off one card may not guarantee a substantial jump immediately. But over time, keeping balances low, managing debt responsibly and building healthy credit habits will improve your score and make you eligible for better loan and card terms.