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Regular Contributor
bobebob
Posts: 236
Registered: ‎08-14-2011

8 point drop in Equifax for new $40 balance?

Just a generic gripe. 

 

Let a $40 balance report on a card (Walmart discover) that is usually zeroed out at statement time.  That's about half a percent of the limit.

 

Droped my Equifax score from 795 to 787. Seems a little excessive to me.

 

bobebob || April: My FICO SW EQ = 814 ||April: Walmart TU Fico=822
Goal = FICO's>800 || In my wallet: CostcoAmEx(20k), DCU Visa Platinum (10k), BoA Visa Signature (17.1k), Walmart Discover (7.5k), AmEx Corporate (5k). All PIF every month.
Moderator
Shogun
Posts: 11,027
Registered: ‎04-15-2011

Re: 8 point drop in Equifax for new $40 balance?

Did you have another account with a balance on it?  If so, multiple accounts with balances get a bit of a ding.


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guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: 8 point drop in Equifax for new $40 balance?

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HiLine
Posts: 2,729
Registered: ‎10-19-2012

Re: 8 point drop in Equifax for new $40 balance?


guiness56 wrote:

The higher your scores the more even little things will hurt it.


+1

 

The effect can be amplified if you significantly increase the percentage of cards with a balance (going from 25% to 50% for example)

Regular Contributor
bobebob
Posts: 236
Registered: ‎08-14-2011

Re: 8 point drop in Equifax for new $40 balance?

Yeah, that's basically what happened.  I had a balance on two of my 4 cards. 

 

Even though the total Util was lower than last month.

 

Just seems like they could realize that not everyone takes every card.  And "gee" you might have a balance on more than one card.

 

Ehh, anything over 760 is gravy anyway.  Just seems like they could have a better way to score that would be a more accurate measure of risk.


HiLine wrote:

guiness56 wrote:

The higher your scores the more even little things will hurt it.


+1

 

The effect can be amplified if you significantly increase the percentage of cards with a balance (going from 25% to 50% for example)


 

bobebob || April: My FICO SW EQ = 814 ||April: Walmart TU Fico=822
Goal = FICO's>800 || In my wallet: CostcoAmEx(20k), DCU Visa Platinum (10k), BoA Visa Signature (17.1k), Walmart Discover (7.5k), AmEx Corporate (5k). All PIF every month.
Regular Contributor
bobebob
Posts: 236
Registered: ‎08-14-2011

Re: 8 point drop in Equifax for new $40 balance?

Update:

My new bill for AMEX and my balance went up over 2K and no change to my FICO on SW.

 

That's what doesn't make sense:

 - a $40 increase on a card that didn't have a balance before drops the score 8 pts.

 - but a $2,000 increase on one that had a balance doesn't do anything to my score?

 

I give up trying to figure out the scoring method.  (probably what they want anyway)

bobebob || April: My FICO SW EQ = 814 ||April: Walmart TU Fico=822
Goal = FICO's>800 || In my wallet: CostcoAmEx(20k), DCU Visa Platinum (10k), BoA Visa Signature (17.1k), Walmart Discover (7.5k), AmEx Corporate (5k). All PIF every month.
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Valued Contributor
myjourney
Posts: 23,618
Registered: ‎02-07-2013

Re: 8 point drop in Equifax for new $40 balance?


bobebob wrote:

Update:

My new bill for AMEX and my balance went up over 2K and no change to my FICO on SW.

 

That's what doesn't make sense:

 - a $40 increase on a card that didn't have a balance before drops the score 8 pts.

 - but a $2,000 increase on one that had a balance doesn't do anything to my score?

 

I give up trying to figure out the scoring method.  (probably what they want anyway)


Hang in there you will find your sweet spot all files are different...1-9% gets me a couple of points..but 1-5% caused more upward movement 5-8 points needless to say you know were I try to stay..Lol

 

Just came off a app spree so now I have to find the sweet spot all over again:smileysad:

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Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: 8 point drop in Equifax for new $40 balance?


bobebob wrote:

Update:

My new bill for AMEX and my balance went up over 2K and no change to my FICO on SW.

 

That's what doesn't make sense:

 - a $40 increase on a card that didn't have a balance before drops the score 8 pts.

 - but a $2,000 increase on one that had a balance doesn't do anything to my score?

 

I give up trying to figure out the scoring method.  (probably what they want anyway)


I think score changes for SW come 7 - 10 days after something is reported.  That is what I keep reading.

Regular Contributor
bobebob
Posts: 236
Registered: ‎08-14-2011

Re: 8 point drop in Equifax for new $40 balance?


guiness56 wrote:

bobebob wrote:

Update:

My new bill for AMEX and my balance went up over 2K and no change to my FICO on SW.

 

That's what doesn't make sense:

 - a $40 increase on a card that didn't have a balance before drops the score 8 pts.

 - but a $2,000 increase on one that had a balance doesn't do anything to my score?

 

I give up trying to figure out the scoring method.  (probably what they want anyway)


I think score changes for SW come 7 - 10 days after something is reported.  That is what I keep reading.


It's been 2 weeks since my Amex bill showed the 2K increase.  Still no change in FICO score.

 

Usually as soon as I get the alert, the score changes.

 

So it seems like they are much more worried about the $40 on a previously zeroed card than a 2K increase on one that wasn't.  Go figure.

bobebob || April: My FICO SW EQ = 814 ||April: Walmart TU Fico=822
Goal = FICO's>800 || In my wallet: CostcoAmEx(20k), DCU Visa Platinum (10k), BoA Visa Signature (17.1k), Walmart Discover (7.5k), AmEx Corporate (5k). All PIF every month.
Frequent Contributor
Dubious
Posts: 271
Registered: ‎02-10-2013

Re: 8 point drop in Equifax for new $40 balance?

So I'm not taking the time to do the math with your limits, but I'm guessing even though the absolute number seems large (2k) it didn't actually affect your util that much percentage wise (let's just say it went from 7 to 9% or something). 

 

In any case, your bucket probably scores number of accounts with a balance pretty highly. 

 

 


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