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New Member
Posts: 4
Registered: ‎01-29-2013
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Score fell 25 points! Help!

My FICO credit score recently fell from 809 to 786 due to "excessive use of credit".  I pay all my bills online, and use my credit card to do it.  I either immediately transfer the money from my checking account to the card, and it's always paid off by the due date.  Could this be seen as excessive use?  My recent alert shows that on January 8 I had a balance of $725, but in 2 1/2 weeks my balance is zero.  How often are these balances checked and corrected?  Anyone have an experience like this?

Valued Contributor
Posts: 1,142
Registered: ‎05-17-2010
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Re: Score fell 25 points! Help!

[ Edited ]

Bf46 wrote:

My FICO credit score recently fell from 809 to 786 due to "excessive use of credit".  I pay all my bills online, and use my credit card to do it.  I either immediately transfer the money from my checking account to the card, and it's always paid off by the due date.  Could this be seen as excessive use?  My recent alert shows that on January 8 I had a balance of $725, but in 2 1/2 weeks my balance is zero.  How often are these balances checked and corrected?  Anyone have an experience like this?


How many balances do you have reporting?  Sounds like you're letting balances report and then paying them.  

 

With regard to how often balances are updated, it varies...most creditors report your balances when statements cut, some do on the last day of th month. 

New Member
Posts: 4
Registered: ‎01-29-2013
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Re: Score fell 25 points! Help!

Thanks so much for the reply.  It sounds like it may self correct on the next billing cycle.  I'll keep checking on it  and see if my score does improve on the next report.  It would seem that they would look at the payees and see I'm paying utilities, insurance, etc. and not retail purchases. I'm new to all this, and will continue to try to educate myself to the process.  Oh yea, I have one credit card, and a BillMeLater account, but it was the credit card they referenced for the change.

Established Contributor
Posts: 573
Registered: ‎10-21-2012
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Re: Score fell 25 points! Help!

Call your CC and ask them what date they report to the CRAs and then make sure you pay before that date.



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


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Posts: 353
Registered: ‎05-01-2007
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Re: Score fell 25 points! Help!

When your balance is reported, they do not go into that much detail (regarding what was purchased).  You just have to time it right so that you don't have a balance when your credit card company updates your information with the CRAs.  Also, FICO scoring is a complex calculation that takes a lot of different variables into account, so it's nothing personal.  You just have to figure out what changed in your particular equation and correct it.

2011: EQ 580~
2012: EQ 620~
2013: EQ 641, TU98 645, TU04 635, TU08 635, EX 648 (lender)
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New Member
Posts: 4
Registered: ‎01-29-2013
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Re: Score fell 25 points! Help!

Thanks for both your comments. I understand it better now. I'm going to call Visa and see when they do their reports to the CRAs.
Contributor
Posts: 268
Registered: ‎10-25-2012
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Re: Score fell 25 points! Help!

Oh wow. Thats scary for me. lol.  I guess I should be doing the same thing. I always pay my bills when I get the notice that my due date is coming up. Is that after they report or before?? I get email alerts for all my accounts and they will email saying "your statement is available for review." I always pay before the actual due date, but it's usually after I read the statement. Is that bad??? Do they report after the statement cuts or before? This is so confusing. lol.

 

I also haven't PIF since november due to the holiday shopping. I still have outstanding balances, but I'm paying way over the amount due each month. Not sure if that makes any difference either.

 

I'm new to all this too. I'm scared to look at my report!


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New Member
Posts: 4
Registered: ‎01-29-2013
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Re: Score fell 25 points! Help!

I really understand. It appears the rules are different credit reporting agencies, so that can be a problem. My last alert said that I had used excessive credit ( according to their rules), but when I spoke with Visa, they said they don't report anything to the CRAs unless its a late payment or missed payment. I've got to figure out how these CRAs get their information.
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Posts: 3,067
Registered: ‎11-02-2009
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Re: Score fell 25 points! Help!

There is no material difference between an 809 and a 786 score.  Both will qualify for the best rates from any lender.  So don't worry about this too much OP.  It's normal for people that are near the very top to see somewhat large fluctuations for minor changes in utilization or number of accounts reporting.  But you're still in the absolute top of credit tiers.  FICO isn't so nuanced to make a meaningful difference in risk prediction at that score range, which is why all lenders treat everyone above 760 the same.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Senior Contributor
Posts: 3,067
Registered: ‎11-02-2009
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Re: Score fell 25 points! Help!


Sitori wrote:

Oh wow. Thats scary for me. lol.  I guess I should be doing the same thing. I always pay my bills when I get the notice that my due date is coming up. Is that after they report or before?? I get email alerts for all my accounts and they will email saying "your statement is available for review." I always pay before the actual due date, but it's usually after I read the statement. Is that bad??? Do they report after the statement cuts or before? This is so confusing. lol.

 

I also haven't PIF since november due to the holiday shopping. I still have outstanding balances, but I'm paying way over the amount due each month. Not sure if that makes any difference either.

 

I'm new to all this too. I'm scared to look at my report!


There are a couple slightly different issues at play here. 

1. When do lenders report?

2. What do lenders report?

 

The second question is really more important.  Most lenders report your statement balance.  They may report it the same day that your statement closes, or it may take a couple days (re the first question), but what they report is what is on your bill. 

 

If you are paying after you get your bill, the number that is going to get reported has already been set.  Is that bad?  Not necessarily.  Your utilization is important to your credit score.  So if you are using a large portion of your credit limit each month, and your are waiting until you get your bill to pay, your score is suffering.  However, it is only temporary.  There's no memory to the scoring algorithm.  So you can pay your cards down the next month and your score will completely recover.

 

If you want to control your utilization, pay your balance down before your bill is generated.  The general rule of thumb for optimum scoring is to have only one card report a balance.  All other cards report $0.  For the one card that reports, have it report 9% or less of that card's CL (not total CL across all cards).


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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