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

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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. 

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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
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