HELP! Paid Retail Balance Drops Score At Alarming Rate! Yikes!

[Repairman]

So I opened a Banana Republic Retail card a couple of months ago in an effort to expand my credit (at the time I only had 3 open cc's - with only 1 with a decent limit). I opened the card, got a $3000 cl and the inquiry had ZERO effect on my credit score. I was elated! HOWEVER, I charged several hundred dollars on the card (only $158 posted to my statement) and I paid that balance in full. As soon as I paid that balance, my score dropped across the board by 11 points! And the reason given was that my retail card balance had dropped to $0.

Now, it's important to note, I also got 2 other new ccs, with great limits ($15,000 & $10,000) which have yet to report. Anyway, I was hoping a month later, my scores would rise again as I was hoping these new cc's would report. Well, turns out the new ccs still have not reported, but my score has dropped AGAIN across the board, this time by 6 more points, and again, the reason stated is that my balance owed on my retail card has decreased to $0. What gives? How long will this happen? What can I do to stop and reverse this? Should I let a balance always report on this retail card? Or will my score rise again once my 2 new ccs with great limits begin to report? This is crazy, and I want to get this under control. I feel like all my hard work building my score over the past year is quickly going down the drain!

[Anonymous]

Let a small balance report each month on only one of your cards. Doesn't really matter which one.

The new accounts will not immediately increase your score, new accounts tend to drop your score when they first show up. Thats because they reduce your AAoA. But your scores will recover as the accounts age. Just remember the above - let only one account report a small balance - less than 10% of its limit.

[Anonymous]

You can wait to let the new accounts report with a balance or just put something cheap on the other.  Never let a zero balance report if you're worried about your scores!  They will always drop.

[Repairman]

---

@Anonymous wrote:

Let a small balance report each month on only one of your cards. Doesn't really matter which one.

The new accounts will not immediately increase your score, new accounts tend to drop your score when they first show up. Thats because they reduce your AAoA. But your scores will recover as the accounts age. Just remember the above - let only one account report a small balance - less than 10% of its limit.

---

That's what I always do, but the problem is, that the balance I'm letting "report" is on the new cc which has YET to report! Would you reccommend I put something small on the retail card that is reporting already, or just wait until the other cc starts to show up?

[Repairman]

---

@Anonymous wrote:

You can wait to let the new accounts report with a balance or just put something cheap on the other.  Never let a zero balance report if you're worried about your scores!  They will always drop.

---

That's what I was wondering. Because the problem is the 1 card I'm leaving a balance on is NOT reporting yet. What type of gains do you think I would see by letting a small balance show up on the retail card in the meantime?

[Anonymous]

It will start coming back to what it was.  Not too long at all.  Just remember to always leave something there.  It's like putting over 30% UT on a card.

[Anonymous]

FICO only sees the last reported statement balance on each card thats being reported. The exception to that is that some banks will immediatley report a $0 balance whenever the card is paid in full. For the most part though, cards are only reported once a month, right after their statement closes and the statement balance is what gets reported. Some banks are oddballs and do all of their reporting at the end of the month. Just be patient, and when your new accounts report a small balance things will correct.

Also its best to pick one card and keep that card as your "reporting" card. Don't try and switch cards every month - that will have your score bouncing all about.

[Anonymous]

Mine are reporting once a month when I use them.  If you let them sit, some will stay the same regardless of you got a cli or not.  I'm now noticing Cap One is doing it.