topic Why did my equifax score drop 12 points in Understanding FICO® Scoring

Why did my equifax score drop 12 points

perfectscore — Wed, 11 Jan 2012 02:28:54 GMT

My transunion score in August 2011 was 732 and equifax was 725. I just pulled my credit report today 1/10/2012 and my transunion stayed at 732 but my equifax is at 713. The only change that I see is that my credit card balance has been zero for a few months. Does not using credit cards and maintaining zero balance hurt your credit score?

Re: Why did my equifax score drop 12 points

MarineVietVet — Wed, 11 Jan 2012 02:38:30 GMT

perfectscore wrote:
My transunion score in August 2011 was 732 and equifax was 725. I just pulled my credit report today 1/10/2012 and my transunion stayed at 732 but my equifax is at 713. The only change that I see is that my credit card balance has been zero for a few months. Does not using credit cards and maintaining zero balance hurt your credit score?

Welcome to the forums.

As a matter of fact showing all zero balances all the time will hurt your score. I know that seems counter productive but that's the way it is. It seems like what helps most people is to only have one of their credit card accounts report a small (<9% of it's credit limit) each month and let any other CC accounts report a zero balance.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Why did my equifax score drop 12 points

perfectscore — Wed, 11 Jan 2012 02:49:49 GMT

I still have mortgage and student loans that I make timely payments on. I just don't use my credit card (only have one). So you are saying that I should charge something (<9%) every month? Can I pay it off every month? I don't want to carry a balance on my credit card and pay unnecessary interest. Please help!!!! My new years resolution 2012 is to be at 750+ by the end of the year. But seeing my equifax score go backwards is really painful.

Re: Why did my equifax score drop 12 points

MarineVietVet — Wed, 11 Jan 2012 02:56:54 GMT

perfectscore wrote:
I still have mortgage and student loans that I make timely payments on. I just don't use my credit card (only have one). So you are saying that I should charge something (<9%) every month? Can I pay it off every month? I don't want to carry a balance on my credit card and pay unnecessary interest. Please help!!!! My new years resolution 2012 is to be at 750+ by the end of the year. But seeing my equifax score go backwards is really painful.

You don't have to use it every month. Every 2-3 months will be fine. Even a $1 charge is enough to show activity. Then wait for it to report on your monthly statement and PIF (Pay In Full) before the due date and you will never pay a penny in interest.

Re: Why did my equifax score drop 12 points

perfectscore — Wed, 11 Jan 2012 03:04:06 GMT

Thank you!!!! :)

Re: Why did my equifax score drop 12 points

MarineVietVet — Wed, 11 Jan 2012 03:08:11 GMT

perfectscore wrote:
Thank you!!!! :)

You are very welcome. Another option is to use that card each month to auto pay a recurring bill (water, gas, cable, etc.) so you don't have to worry about how long it's been since you last used the card. I do this for most of my cards.

The same rule would apply. Wait for the charge to post and then PIF.

Re: Why did my equifax score drop 12 points

Duke-of-Earl — Wed, 11 Jan 2012 06:00:50 GMT

It's also worth noting that the ding for all-zero CC balances is a particular specialty at Equifax. I did a series of tests a couple of years ago of what the impact was, for both EQ and TU like your comparison. I found my EQ FICO score went down by 4 points and TU FICO went up by 6, for all zero balances, compared to my usual situation maintaining a $10 balance on one card account. I went through several cycles and found this pattern to be absolutely repeatable. YMMV, of course.

Re: Why did my equifax score drop 12 points

perfectscore — Wed, 11 Jan 2012 12:16:48 GMT

I am sorry but what is YMMV?

Re: Why did my equifax score drop 12 points

llecs — Wed, 11 Jan 2012 14:38:28 GMT

Your Mileage May Vary (e.g. there's nothing set in concrete and your results can vary)