Credit Cards Center Credit cards from our partners
Reply
Member
Posts: 9
Registered: ‎04-10-2016
0

Credit Score Drastically Bouncing

Hi,

 

I don't understand what is happening with my credit score, I check it very often.  in February my Equifax shot up to 759 from 710 in January, for no reason, TU and EX were 709 and 714 respectively.  Now, I just checked my report and EQ dropped down to 685, TU to 700 and EX to 688.  The only thing I have done is put a $1000 purchase on a card, effectively maxing it out.  I don't see anything in my report to indicate a negative that would warrant such huge drops.  I do, however, have high utilization.

 

Can anyone offer some insight?  I have been fighting to improve my scores, and I have, but these drops are really disheartening especially since I am starting to look to buy a house and get a mortgage.

 

Thank you!

Established Contributor
Posts: 545
Registered: ‎02-23-2017

Re: Credit Score Drastically Bouncing

[ Edited ]

Very high utilization and/or a maxed out card will do it. The good news is that paying your balances will cause your score to rebound.

 

I'd be particularly concerned about your maxed out card, not because of the score, but because you might make your card issuer nervous. When making a big purchase on a low-limit card, I think the best thing is to pay it off as soon as it posts. Even better would be to avoid having it post to your report so other lenders don't have a chance to take notice.

 

 

Senior Contributor
Posts: 5,572
Registered: ‎02-24-2015

Re: Credit Score Drastically Bouncing


tgerman1029 wrote:

Hi,

 

I don't understand what is happening with my credit score, I check it very often.  in February my Equifax shot up to 759 from 710 in January, for no reason, TU and EX were 709 and 714 respectively.  Now, I just checked my report and EQ dropped down to 685, TU to 700 and EX to 688.  The only thing I have done is put a $1000 purchase on a card, effectively maxing it out.  I don't see anything in my report to indicate a negative that would warrant such huge drops.  I do, however, have high utilization.

 

Can anyone offer some insight?  I have been fighting to improve my scores, and I have, but these drops are really disheartening especially since I am starting to look to buy a house and get a mortgage.

 

Thank you!


Utilization is the 2nd biggest factor in the FICO scores, representing 30% of the equation.

 

If you're looking to optimize your scores for the mortgage application, you should be letting only one card report a balance each month, and the balance should be 29% or less of the limit on that card.

FICO8 EQ 782 TU 804 EX 783 FICO5 EQ 733 Total revolving 463000
Member
Posts: 9
Registered: ‎04-10-2016
0

Re: Credit Score Drastically Bouncing

Thank you for the replies.  So if I just pay off the charge on the card I just maxed out, in theory, my score should come right back?

Established Contributor
Posts: 545
Registered: ‎02-23-2017
0

Re: Credit Score Drastically Bouncing

Yeah, utilization is under your control, and it'll bounce right back as soon as your card reports to the bureaus again.

 

If you're prepping for a mortgage, you might want to fully optimize the utilization portion of your score. You do this by having all cards reporting zero except for one. The card reporting greater than zero should be a major bank card, and it should show a balance somewhere between $5 and >8.9%. You don't want to leave a balance of less than $5 because some card issuers will forgive small balances and report zero rather than bothering to bill you. And you don't want to rely on Chase to be the card that reports a balance because they'll report zero mid-cycle if you pay off the card.

Senior Contributor
Posts: 5,572
Registered: ‎02-24-2015
0

Re: Credit Score Drastically Bouncing


tgerman1029 wrote:

Thank you for the replies.  So if I just pay off the charge on the card I just maxed out, in theory, my score should come right back?


Not in theory... in reality.

FICO8 EQ 782 TU 804 EX 783 FICO5 EQ 733 Total revolving 463000

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.