WARNING on FICO scoring

[Drsgwld]

I had an 11 point drop on my credit report. The ONLY changes were I decided not to carry a balance on either credit card this month. I did use one card (CL 500) and paid off the $17 balance and I used the other card (CL 1000) $280 and paid it off. That was the ONLY change. I confirmed it with a manager and she said, to get the highest FICO you need to carry a balance of 6% or less.

The scoring system is shotty and **bleep**! There is no encouragement set forward for those who work hard to be financially responsible. 11 point DROP for paying off a balance is worse than a 30 day late or an old ghost collection.

[Anonymous]

I understand your feelings completely.  I was told here to expect a slight score drop because I paid off my car loan early. 

[Anonymous]

A 30 day late or ghost collection can easily drop your score 50+ points.

Just sayin'...

[Drsgwld]

It's so true! The good thing about paying off an installment is, they align your CR with your FICO. That looks charming as all hell to a lender! Yet, you need to have at least one installment. Don't go too long with nothing to fill the void. Even a small Student Loan acct with a portion of the CL used will do wonders and it will keep you educationally marketable!

[Drsgwld]

If you still have an installment account, you'll be ok!