Nine point drop Really!

[Anonymous]

This is really confusing understanding this credit scoring system. Darn if you do and darn if you don't.  I have only one credit card reporting secured open sky. I always pay on time only have $200 on the card. Last month I decided to pay four days prior to the due date paid $185 left $15 to be reported as utilization ratio. Oh Lawd, I guess wrong move. My Equifax dropped 3 points TransUnion 9 and Experian 1 point. I'm totally upset and very hurt. I was almost at 620 with TransUnion. My Fico clearly shows the decrease is from the card. I usually pay my cards off in full and get points, but this time it back fired. Feeling helpless...Please help me understand

[Anonymous]

 I always pay on time only have $200 on the card. Last month I decided to pay four days prior to the due date paid $185 left $15 to be reported as utilization ratio. Oh Lawd, I guess wrong move. My Equifax dropped 3 points TransUnion 9 and Experian 1 point

That was the problem right there.You mentioned 4 days PRIOR.  My guess is that it reported you with a 92% utilization rate.(200x.925=185) So let's take me for example with the month of january:January have 31 days, One of my cc's are due on the 3rd of every month which would make it feb 3rd. My statement date is the 8th. I have a $300 line. So i use, let's say $260. On or around the 27th or28th of january, i would pay $230 on my cc and leave an amount due of $30 to be reported.(that's at 10% utilization) On feb 3rd, my bill would say that i owe $30. I normally wait until around the 8th when i get my statement, and i pay that $30 and start all over. Therefore i am assured that $30, 10% utilization is what's being reported to the cra's. HTH

[Mindcrime]

Part of the issue is that you only have one CC reporting.  To maximize FICO you need at least 3 revolvers. If you can't get regular cards, try opening a secured with your own bank or a local CU. 

Having Open Sky on your reports spells past credit problems for future manual reviews.

[Anonymous]

Don't try to understand minor flucuations of a few points. The scoring is simply far too complex to try to say 'this one thing did this to my score' - even though myfico tells you thats the case, it simply isn't so.

Now since you only have one card, I would suggest getting a second and third card. With 600+ scores you should qualify for a Cap One card, unless you have very recent problems on your reports.

Once those card report for a few months you will see more upward movement.

[dashpt]

I think you just need more cards.......but paying four days prior to the due date should not have affected you because the statement had not cut yet....people often confuse the due date with statement date....most of my cards I pay a couple of days before due date or even on the due date, I just make sure I pay before the statement date....

[TURNERHOOVER]

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@Anonymous wrote:

This is really confusing understanding this credit scoring system. Darn if you do and darn if you don't.  I have only one credit card reporting secured open sky. I always pay on time only have $200 on the card. Last month I decided to pay four days prior to the due date paid $185 left $15 to be reported as utilization ratio. Oh Lawd, I guess wrong move. My Equifax dropped 3 points TransUnion 9 and Experian 1 point. I'm totally upset and very hurt. I was almost at 620 with TransUnion. My Fico clearly shows the decrease is from the card. I usually pay my cards off in full and get points, but this time it back fired. Feeling helpless...Please help me understand

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If you apply for more credit or at least ask for an increase on existing credit you will gain more points even though there will be a slight drop at first if approved. Building takes time. 

[Mindcrime]

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@TURNERHOOVER wrote:

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@Anonymous wrote:

This is really confusing understanding this credit scoring system. Darn if you do and darn if you don't.  I have only one credit card reporting secured open sky. I always pay on time only have $200 on the card. Last month I decided to pay four days prior to the due date paid $185 left $15 to be reported as utilization ratio. Oh Lawd, I guess wrong move. My Equifax dropped 3 points TransUnion 9 and Experian 1 point. I'm totally upset and very hurt. I was almost at 620 with TransUnion. My Fico clearly shows the decrease is from the card. I usually pay my cards off in full and get points, but this time it back fired. Feeling helpless...Please help me understand

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If you apply for more credit or at least ask for an increase on existing credit you will gain more points even though there will be a slight drop at first if approved. Building takes time. 

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A CLI itself on an existing account will have nothing to do with a score drop.

If a HP is involved, the added inquiry might

[Anonymous]

check out the Capital One secured card.  I opened it with $200 after 6 months they bumped it to $500 and also approved me for the unsecured quicksilver which also has been bumped from $300 to $1500 in 6 months.  

[dbs8222009]

Previous posters had it right- your statement date is the important one for utilization. Paying before the due date is great, but does not affect your statement balance- only the balance on the day the statement generates will affect your utilization. My trick is to look at the previous month's statement and subtract 3 days. Obviously it goes without saying, but make sure to pay your minimum by the due date! Other than that, pay whatever you want to reduce your balance by the date the statement generates and you'll be all good for a boost! In my experience, whatever you lose because of high utilization, you can regain by lowering it the following month. So don't fret over it, you'll be back on your way in no time.