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Frequent Contributor
racer-x
Posts: 329
Registered: ‎09-16-2012

7 pt. score drop because of a $32 Walmart balance????

WTH?   I've used my $700 Walmart card one time since I got it, 1 1/2 months ago.

I put a whopping $32 on it.  The $25 payment isn't due til 12-26.

 

Today I got a myfico Scorewatch alert and my EQ dropped from 702 to 695. 

 

I thought it was acceptable to keep your utilization under 10% without any negative effects to your credit score? 

 

So what's the solution?  As soon as you charge something, immeditely get to your smart phone or computer and pay the balance?  

 

Damn....I'm going to my CU tomorrow or Saturday to get an $8000 auto loan....I wonder how this will affect that?  My CU pulls EQ only. 


Starting Score 9/12: EQ 645 TU 641 EX 651
Current Score5/13: myFico EQ 687 DicoverTU 705 myFico EX 738
Goal Score: 750

US Bank PLOC-$15K, CSP-$15k, Chs Freedom-$6k, CapOne/HSBC Visa-$15k, US Bank Visa- $10k, DCU Visa-$10k, Paypal Xtras MC-$15k, USAA MC-$6k, Lowes-$8600, CapOne Visa-$10k, Discover IT-$12.9K, BoA Visa-$10.1K, Walmart -$4k, GECU Visa-$3500, US RLOC-$750

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Frequent Contributor
newportguy
Posts: 351
Registered: ‎11-11-2012

Re: 7 pt. score drop because of a $32 Walmart balance????

[ Edited ]

racer-x wrote:

WTH?   I've used my $700 Walmart card one time since I got it, 1 1/2 months ago.

I put a whopping $32 on it.  The $25 payment isn't due til 12-26.

 

Today I got a myfico Scorewatch alert and my EQ dropped from 702 to 695. 

 

I thought it was acceptable to keep your utilization under 10% without any negative effects to your credit score? 

 

So what's the solution?  As soon as you charge something, immeditely get to your smart phone or computer and pay the balance?  

 

Damn....I'm going to my CU tomorrow or Saturday to get an $8000 auto loan....I wonder how this will affect that?  My CU pulls EQ only. 


It doesn't work that way.....most of time every 1% raise in ultization = to a 1 point drop in score


Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
*** Amex - BCP 10 K * PenFed - CR 5 K * Amex - GDSM 5 K *
Discover - IT 5 K ***** NO MORE APPS FOR ME IN 2013 *****
Frequent Contributor
racer-x
Posts: 329
Registered: ‎09-16-2012

Re: 7 pt. score drop because of a $32 Walmart balance????

and.....I just looked at the Scorewatch alert and it says I have (2) accounts that have an increase in balance.....There are (2) Walmart accounts listed but they are the same one?

So I'm getting a reduction in my EQ score because the same Walmart account is being reported twice?

 

2 of your accounts reported balance increases       

GECRB/WALMART
(XXXXXXXXXXXX1858)
    New balance: $32  
Account opened: 10/2012
Description: Charge Amount in H/C column is credit limit
 Previously reportedNewly reported
Account balance:$0$32
You received this alert because this balance which was previously $0 increased to $32.  This exceeded your alert limit of $5. You can change the settings for this kind of alert here.
Contact: GECRB/WALMART, PO Box 965024, Orlando, FL, 328965024   •   (800) 957-0832
GECRB/WALMART
(XXXXXXXXXXXX1858)
    New balance: $32  
Account opened: 10/2012
Description: Charge Amount in H/C column is credit limit
 Previously reportedNewly reported
Account balance:$0$32
You received this alert because this balance which was previously $0 increased to $32.  This exceeded your alert limit of 5%. You can change the settings for this kind of alert here.
Contact: GECRB/WALMART, PO Box 965024, Orlando, FL, 328965024   •   (800) 957-0832
How balance increases impact your score:

A balance increase on an account may lower your FICO® score.

A large balance on an account, or balances on many accounts, can be a sign that you may be having trouble paying back debts. Since your FICO® score measures the chances that you will pay back a debt, larger balances or balances on more accounts can lower your score.

"Maxing out" a credit card or other line of credit is when the balance on the account comes close to the account's credit limit. This can dramatically lower your FICO® score because it is often a sign of a consumer who desperately needs credit and may not be able to pay it back.

The drop in your FICO® score caused by a balance increase can be reversed by paying down the balance.


Starting Score 9/12: EQ 645 TU 641 EX 651
Current Score5/13: myFico EQ 687 DicoverTU 705 myFico EX 738
Goal Score: 750

US Bank PLOC-$15K, CSP-$15k, Chs Freedom-$6k, CapOne/HSBC Visa-$15k, US Bank Visa- $10k, DCU Visa-$10k, Paypal Xtras MC-$15k, USAA MC-$6k, Lowes-$8600, CapOne Visa-$10k, Discover IT-$12.9K, BoA Visa-$10.1K, Walmart -$4k, GECU Visa-$3500, US RLOC-$750

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Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: 7 pt. score drop because of a $32 Walmart balance????


newportguy wrote:

racer-x wrote:

WTH?   I've used my $700 Walmart card one time since I got it, 1 1/2 months ago.

I put a whopping $32 on it.  The $25 payment isn't due til 12-26.

 

Today I got a myfico Scorewatch alert and my EQ dropped from 702 to 695. 

 

I thought it was acceptable to keep your utilization under 10% without any negative effects to your credit score? 

 

So what's the solution?  As soon as you charge something, immeditely get to your smart phone or computer and pay the balance?  

 

Damn....I'm going to my CU tomorrow or Saturday to get an $8000 auto loan....I wonder how this will affect that?  My CU pulls EQ only. 


It doesn't work that way.....most of time every 1% raise in ultization = to a 1 point drop in score


Well that's definitely not true. 

 

What does the rest of your profile look like? Do you have a thin profile? Sometimes changes can swing a thin file more dramatically than others. If the card was reporting zero previously maybe a new account reporting a balance had something to do with it

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Frequent Contributor
newportguy
Posts: 351
Registered: ‎11-11-2012

Re: 7 pt. score drop because of a $32 Walmart balance????

your ultization is the amount owed when they cut your statement and it's reported....... $ 32 of a $750 limit ......  You need to keep your ultization at 1% when they cut your statements


Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
*** Amex - BCP 10 K * PenFed - CR 5 K * Amex - GDSM 5 K *
Discover - IT 5 K ***** NO MORE APPS FOR ME IN 2013 *****
Frequent Contributor
newportguy
Posts: 351
Registered: ‎11-11-2012

Re: 7 pt. score drop because of a $32 Walmart balance????


Jutz wrote:

newportguy wrote:

racer-x wrote:

WTH?   I've used my $700 Walmart card one time since I got it, 1 1/2 months ago.

I put a whopping $32 on it.  The $25 payment isn't due til 12-26.

 

Today I got a myfico Scorewatch alert and my EQ dropped from 702 to 695. 

 

I thought it was acceptable to keep your utilization under 10% without any negative effects to your credit score? 

 

So what's the solution?  As soon as you charge something, immeditely get to your smart phone or computer and pay the balance?  

 

Damn....I'm going to my CU tomorrow or Saturday to get an $8000 auto loan....I wonder how this will affect that?  My CU pulls EQ only. 


It doesn't work that way.....most of time every 1% raise in ultization = to a 1 point drop in score


Well that's definitely not true. 

 

What does the rest of your profile look like? Do you have a thin profile? Sometimes changes can swing a thin file more dramatically than others. If the card was reporting zero previously maybe a new account reporting a balance had something to do with it


Well it's true on mine........... And i said MOST of the time


Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
*** Amex - BCP 10 K * PenFed - CR 5 K * Amex - GDSM 5 K *
Discover - IT 5 K ***** NO MORE APPS FOR ME IN 2013 *****
Contributor
Karunch
Posts: 93
Registered: ‎01-31-2008

Re: 7 pt. score drop because of a $32 Walmart balance????

[ Edited ]

The last 4 digits of the account numbers are the same, so I'm fairly certain that you only have one Walmart card showing up on your report.  It's showing up twice in ScoreWatch because it triggered 2 of the alerts, one for the dollar increase and the 2nd for the percentage increase.

 

"This exceeded your alert limit of $5"

"This exceeded your alert limit of 5%."

 


Starting Score: 686 EQ (8/9/12), 668 TU (WalMart 8/8/12), 685 EX (3/25/14)
Most Recent Score: 684 EQ (3/26/14), 688 TU (3/25/14), 685 EX (3/25/14)
Goal Score: 700+


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Frequent Contributor
racer-x
Posts: 329
Registered: ‎09-16-2012

Re: 7 pt. score drop because of a $32 Walmart balance????

[ Edited ]

I'd say I have a thin profile.

 

Cap One - $500 CL, $0 balance

Walmart - $700 CL, $32 balance

U.S. Bank Reserve credit line - $750 CL, $47 balance

Cap One - $15k CL, balance $8000

 

total utilization 49%.  2.5 yrs AAoA.  No lates, no negs on EQ,(1 paid collection on TU and EX) perfect payment history last 4.5 yrs, 0 to 1 hard inquiries

 

myfico EQ 695

myfico TU 684

EX 672


Starting Score 9/12: EQ 645 TU 641 EX 651
Current Score5/13: myFico EQ 687 DicoverTU 705 myFico EX 738
Goal Score: 750

US Bank PLOC-$15K, CSP-$15k, Chs Freedom-$6k, CapOne/HSBC Visa-$15k, US Bank Visa- $10k, DCU Visa-$10k, Paypal Xtras MC-$15k, USAA MC-$6k, Lowes-$8600, CapOne Visa-$10k, Discover IT-$12.9K, BoA Visa-$10.1K, Walmart -$4k, GECU Visa-$3500, US RLOC-$750

Take the FICO Fitness Challenge
Frequent Contributor
newportguy
Posts: 351
Registered: ‎11-11-2012

Re: 7 pt. score drop because of a $32 Walmart balance????


racer-x wrote:

I'd say I have a thin profile.

 

Cap One - $500 CL, $0 balance

Walmart - $700 CL, $32 balance

U.S. Bank Reserve credit line - $750 CL, $47 balance

Cap One - $15k CL, balance $8000

 

total utilization 49%.  2.5 yrs AAoA.  No lates, no negs on EQ,(1 paid collection on TU and EX) perfect payment history last 4.5 yrs, 0 to 1 hard inquiries

 

myfico EQ 695

myfico TU 684

EX 672


That's what killing your score !!!  your score will go up as  you lower the Bal .


Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
*** Amex - BCP 10 K * PenFed - CR 5 K * Amex - GDSM 5 K *
Discover - IT 5 K ***** NO MORE APPS FOR ME IN 2013 *****
Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: 7 pt. score drop because of a $32 Walmart balance????


newportguy wrote:

racer-x wrote:

I'd say I have a thin profile.

 

Cap One - $500 CL, $0 balance

Walmart - $700 CL, $32 balance

U.S. Bank Reserve credit line - $750 CL, $47 balance

Cap One - $15k CL, balance $8000

 

total utilization 49%.  2.5 yrs AAoA.  No lates, no negs on EQ,(1 paid collection on TU and EX) perfect payment history last 4.5 yrs, 0 to 1 hard inquiries

 

myfico EQ 695

myfico TU 684

EX 672


That's what killing your score !!!  your score will go up as  you lower the Bal .


we definitely agree on that!!

 

Additionally, I think that your score dropped from having your third of four cards report a balance

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL

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