Balance on closed CC dropped form $7 to $0, guess what Equifax did?

[tjmolly]

Those losers at Equifax dropped my score 10pts after a recent balance update from $7 to $0.  Equifax is by far the worst CRA I've dealt with.

[Anonymous]

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@tjmolly wrote:

Those losers at Equifax dropped my score 10pts after a recent balance update from $7 to $0.  Equifax is by far the worst CRA I've dealt with.

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A scoring reduction for a balance to $0 is often expected (not always, since some balances reporting $0 can be beneficial; just not all of them) with various FICO scoring models (ie. FICO 8), which Equifax uses under license. Think of a credit score being more akin to a debt score, and it makes more sense why the scoring behaves that way.

[tjmolly]

I guess I'll just run up some debt then. 

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@Anonymous wrote:

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@tjmolly wrote:

Those losers at Equifax dropped my score 10pts after a recent balance update from $7 to $0.  Equifax is by far the worst CRA I've dealt with.

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A scoring reduction for a balance to $0 is often expected (not always, since some balances reporting $0 can be beneficial; just not all of them) with various FICO scoring models (ie. FICO 8), which Equifax uses under license. Think of a credit score being more akin to a debt score, and it makes more sense why the scoring behaves that way.

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[Anonymous]

Running up some debt is exactly what they want you to do.  If you don't have a mortgage, a vehicle loan and some credit card debt reporting, you're not going to have a perfect score.

[RobertEG]

If it is a closed revolving account, once the balance reaches $0, it is no longer included in your % util scoring.

EQ only recorded the updated balance.  FICO then did the scoring.

FICO discontinued inclusion of the account, including its CL, in your % util calculation once it is closed and paid.

More specifically, you lost the inclusion of the account CL as part of the sum of all CL's in the denominator........

[tjmolly]

Actually it was an open Capital one card with a $2K limit.  So it should help my overall debt/limit ratios.  I have a mortgage, i have installement debt (personal loan and car loan), all on time payments.  I also have a Lowes card, $0 bal with $5500 limit.  I have Discover $170bal/$9400CL.  I can't figure it out!

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@RobertEG wrote:

If it is a closed revolving account, once the balance reaches $0, it is no longer included in your % util scoring.

EQ only recorded the updated balance.  FICO then did the scoring.

FICO discontinued inclusion of the account, including its CL, in your % util calculation once it is closed and paid.

More specifically, you lost the inclusion of the account CL as part of the sum of all CL's in the denominator........

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[Anonymous]

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@tjmolly wrote:

Actually it was an open Capital one card with a $2K limit.  So it should help my overall debt/limit ratios.  I have a mortgage, i have installement debt (personal loan and car loan), all on time payments.  I also have a Lowes card, $0 bal with $5500 limit.  I have Discover $170bal/$9400CL.  I can't figure it out!

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@RobertEG wrote:

If it is a closed revolving account, once the balance reaches $0, it is no longer included in your % util scoring.

EQ only recorded the updated balance.  FICO then did the scoring.

FICO discontinued inclusion of the account, including its CL, in your % util calculation once it is closed and paid.

More specifically, you lost the inclusion of the account CL as part of the sum of all CL's in the denominator........

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I'm confused... you said closed CC?

[tjmolly]

My bad.  It is NOT closed, it is open with a $2k limit.