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

Regular Contributor

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

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.

Message 1 of 8
7 REPLIES
Frequent Contributor

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


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.


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.

Starting Score Mar-15: EX-513, TU-507, EQ-510
Current Score Oct-15: EX-658, TU-631, EQ-628
Message 2 of 8
Regular Contributor

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

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


ronpa wrote:

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.


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.


 

Message 3 of 8
Frequent Contributor

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

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.


Rebuilding since 9/29/2015: EQ 599 TU 582 EX 569 $5K avail credit
current (07/2017) EQ 709 TU 706 EX 675 ~$75K avail credit
Message 4 of 8
Community Leader
Epic Contributor

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

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........

Message 5 of 8
Regular Contributor

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

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!


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........


 

Message 6 of 8
Valued Contributor

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


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!


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........


 


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


EX08 659 EQ08 660 TU08 695 Starting: mid 300'sGoal: 700
Message 7 of 8
Highlighted
Regular Contributor

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

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

Message 8 of 8