Scoring - Confused

[Anonymous]

Hi,

I am new to these Forums and am currently working to get my credit up.  I have paid off all of the collections I have against me and have been working with 3 credit cards with an updated total credit line of $3600.00 (1 relatively new and the others within 3 years of age) to improve my credit scores.  They have all increased recently with the strategy of low utlization with paying them off to zero every month. 

Recently my CapOne card just increased my limit by $1000.00 which decreased my score by 8 points along with the alert that paying off to zero also dropped my scopre by 8 points.  I am little confused by why paying to zero on a card would drop my score - also why a credit increase I did not ask for would drop my score.  

Should I leave a small balance on my cards?  I am trying to have less than 10% utilization per month.  What is the best strategy for consistant growth with my credit score?

Your thoughts are very appreciated?

Eq 641  Tr 625  Ex 641

 - R1ch3rd

[Anonymous]

See my signature link for my rules and see the AZEO Method for managing balances to maximize scoring.

If ALL credit cards report $0 at the same time, you can lose FICO points for sure.

Where did you get your credit scores from?

[Anonymous]

Hi ABCD2199.

Great tips in your signature link.  I will adjust and make changes accordingly in my payment procedures.

I get my scores from my subscription at myFICO.  Ultimate 3B.  I am shooting for that over 700 range.

Thank you.

[Anonymous]

Yeah fico can be very confusing but remember you aren’t their customer, the banks are.

When you pay all your cards to $0 the banks think you have credit but don’t use it so fico lowers your score basically because they can’t tell if you use what you have!

Goofy but true.