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18 point decrease in FICO Score!

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spi4u2
New Member

18 point decrease in FICO Score!

I have been reading these forums for several months now and I'm greatful for all the information I have learned on here.  Here is my first question to the Community. 

 

I had read somewhere that my FICO Score would be better if I kept a small balance on my CC's each month.  Something about showing the card was being used.  On my previous statement for my PNC Visa and American Express, I had left a balance of $5 and 1$.  This month, after a paid collection dropped off my report, I had a score incresse of 23 points.  The next day, my credit card companies reported the balances as paid down to $0 on both CC's and my score dropped 18 points.  Is this typical?  Should I always maintain a balance on my CC's? 

 

Thank you for any responses.

PNC Visa 12k | Amex BCP 3k | Discover IT 1k | Belk Charge Card 850
Message 1 of 8
7 REPLIES 7
TRC_WA
Senior Contributor

Re: 18 point decrease in FICO Score!

My scores are about 20 points higher now when I have 7 of 9 cards reporting a $0 balance than when I had said 7 cards reporting small $1-$100 balances.

 

$0 is better.

FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 2 of 8
spi4u2
New Member

Re: 18 point decrease in FICO Score!

I'm confused then as to why my score dropped 18 points then.  I've looked at one of my prior reports on myFico and this was listed as hurting my score:

 

There are no recent balances on your revolving credit accounts. Your credit report shows no recent balances on your revolving accounts [?]. Your FICO® Score was hurt because you are not currently demonstrating active revolving credit management. What to do about this: You might consider moderate and responsible use of your credit cards (such as charging low balances and repaying them on time).

 

 

PNC Visa 12k | Amex BCP 3k | Discover IT 1k | Belk Charge Card 850
Message 3 of 8
SusieQ
Regular Contributor

Re: 18 point decrease in FICO Score!

you should have one cc with a small balance, and the rest zero.   Having no balances indicates lack of usage.

Message 4 of 8
fused
Moderator Emeritus

Re: 18 point decrease in FICO Score!


@SusieQ wrote:

you should have one cc with a small balance, and the rest zero.   Having no balances indicates lack of usage.


^That! +1!Smiley Happy

Message 5 of 8
Anonymous
Not applicable

Re: 18 point decrease in FICO Score!

My score dropped from 745 to 720 EQ and i dont know why either..

Message 6 of 8
spi4u2
New Member

Re: 18 point decrease in FICO Score!

Thank you all for the information.  I'll be sure to keep a small balance on 1 of my cards.

PNC Visa 12k | Amex BCP 3k | Discover IT 1k | Belk Charge Card 850
Message 7 of 8
eric19k
Established Contributor

Re: 18 point decrease in FICO Score!

My scores are jumping everyday. I even stopped paying attention.
TU Scores:
May 2014- 466
July 2014- 537
September 2014- 602
Goal Scores- 720 by March 2014
Message 8 of 8
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