New Member
Posts: 4
Registered: ‎04-28-2007

Fico score down 16 points for carrying a balance except I never actually carried a balance??!

This is yet another frustrating set back on my quest towards improved credit.  I started this process two years ago with a score of 520 and successfully acheived the 700's a few months ago.  I opened a Target card to re-establish credit (it's the only card I have) and pay it off every. single. month.  However for the last few months, I've been receiving and update from myfico saying that my score has continued to drop -4 points due to the fact that I am carrying a balance on a credit card. Again, not true when I pay off the card to zero every month on time, no exceptions. Now my score is down to 678.  I've never been late with a payment and this is the only credit card I have opened at this time.


Any ideas why this is happening and what I can do about it?


Thanks in advance. 

Posts: 98
Registered: ‎02-28-2008

Re: Fico score down 16 points for carrying a balance except I never actually carried a balance??!

Are you paying the balance BEFORE the statement cuts or when you receive your monthly statement?


If the later then the balance is reported to the CRA - even if you instantly pay it.  If that "statement balance" goes up the next month it looks like you are increasing your debt.


TU (3/30/09): 771
EQ (3/30/09): 751
EX (5/19/08): 715

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+