I know everyones experience/scores/history differ so this may or may not effect you. But its what happen to me.
Few months ago Debt Free - Zero Balance on all reports About 2 months ago - noticed a 4 point drop in score for no reason Found out maybe cause not using credit cards/dormant/nonreporting CRA Fount out should carry balance of 1-6% ( NOT O% ) Went out and put 1% on all cards I have - No score changes. This month - my Chase Reported a balance of $75 TU Stayed - EX Dropped 3 points - EQ Dropped 22 points!!! I believe it was from the Chase Reporting Read the SW Alert that any balance increase can lower score Read the SW Alert that any Charge on a DORMANT CARD can lower score Hadn't used any Cards for 4 months till now just to add/keep reporting This week made a Desicion on what cards to keep/leave 1% balance Kept all my Prime cards with Largest Balances Paid OFF the other 2 that I dont plan to use Will see if scores go back up on EQ.
I guess this is proof that you should keep a balance so your card never goes dormant or unused/unreported OR if you stop using a card for a long time, in my case 4 months, you should expect to see a score drop in some cases. I was surprised that only $75 on a $7500 CL would do that.
I've learned yet another thing so figured I'd mention my experience. But while I did like having no balances, I feel keeping that now only keeping 3 cards with a 1% will be fine and keep me in the mid 700's.
I guess this is proof that you should keep a balance so your card never goes dormant or unused/unreported OR if you stop using a card for a long time, in my case 4 months, you should expect to see a score drop in some cases.
I have a card (gas, $700 CL) which I can no loNger use locally as there are not any gas stations here any more. But it is a very old card and I want to keep it active. The CCC told me to use it more than once every 12 months and it will not go inactive. But when I did use it - sure enough, a score drop ($22 balance).
It does not bother me unless for some reason I would have to do it at a time when I am seeking credit.
Message Edited by MidnightVoice on 09-24-200709:47 AM
The slide from grace is really more like gliding And I've found the trick is not to stop the sliding But to find a graceful way of staying slid
great post--thanks for the heads up. I have 3 cards that have been inactive for a few months. I have a card that I got 3 months ago that I have never used. Thinking of closing it--should be fine, won't effect utilization. I just don't want to have to bother to try and use it every so often
i think these score drops are only temporary because it will be the PAYMENTS on those balances that boost your score. I'd be interested to see how the scores change after a couple of payments. Keep us posted!
09/28/07 EQ 498 EX 537 TU 477 12/27/07 EQ 526 EX 562 TU 541 02/26/08 EQ 526 EX 589 TU 579 11/09/08 EQ 562 EX 648 TU 578
Thanks for sharing. Im glad that someone else can confirm this happened to them too. Sorry for your drop too of course. Its wild to see that much of a drop for a small amount. Yeah, ....even with no balances my scores would go up and down 4 points here and there. So they should recover it was just a surprise to see.