Reply
Frequent Contributor
bobebob
Posts: 255
Registered: ‎08-14-2011
0

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 || Sept: My FICO SW EQ(Upgraded Version) = 833 ||Sept: Walmart TU Fico=838Goal = 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: 12,952
Registered: ‎04-15-2011
0

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.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

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

Blogger
HiLine
Posts: 2,946
Registered: ‎10-19-2012
0

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)

Frequent Contributor
bobebob
Posts: 255
Registered: ‎08-14-2011
0

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 || Sept: My FICO SW EQ(Upgraded Version) = 833 ||Sept: Walmart TU Fico=838Goal = 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
bobebob
Posts: 255
Registered: ‎08-14-2011
0

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 || Sept: My FICO SW EQ(Upgraded Version) = 833 ||Sept: Walmart TU Fico=838Goal = 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.
Community Leader
Senior Contributor
myjourney
Posts: 26,602
Registered: ‎02-07-2013
0

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:

"Intelligence plus character--that is the goal of true education"
Last 5 apps 6/6/13


Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

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.

Frequent Contributor
bobebob
Posts: 255
Registered: ‎08-14-2011
0

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 || Sept: My FICO SW EQ(Upgraded Version) = 833 ||Sept: Walmart TU Fico=838Goal = 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
0

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. 

 

 


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}