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New Visitor
Meeradal
Posts: 2
Registered: ‎09-10-2013
0

Extreme Score Drop

Hello,

I recently made a $40 purchase on a credit card and paid the bill when it came in. When the charge registered with FICO, however, it dropped my score by 30 points! I contacted customer service, but they just gave me a speech about the formula and charges not registering for 30 days, etc. The response was concluded with a somewhat condescending reminder to "pay my bills on time". As my record reflects, I am very punctual when it comes to paying bills. Is it normal to see such a steep drop after making such a small purchase? I charge more than that when I use my cards typically, so I don't understand how $40 has taken me from a good credit score to a dismal score.

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Valued Contributor
DaveSignal
Posts: 2,111
Registered: ‎07-29-2011
0

Re: Extreme Score Drop

How many of your credit cards are reporting balances above $0?

EX:694 TU:744 EQ:777
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Member
j_ayala
Posts: 7
Registered: ‎10-21-2011
0

Re: Extreme Score Drop

Hi I have the same problem I paid in full my credit card and my balance was reported $ 0 why FICO DROPPED my score? I thought if your balance are $0 we have good credit record
Moderator
09Lexie
Posts: 26,608
Registered: ‎09-13-2012
0

Re: Extreme Score Drop

For scoring, you should have 1 card report a balance of 1-10% total util
New Visitor
Meeradal
Posts: 2
Registered: ‎09-10-2013
0

Re: Extreme Score Drop

2 of 4, but I'm not even close to being maxed out. 

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Valued Contributor
DaveSignal
Posts: 2,111
Registered: ‎07-29-2011
0

Re: Extreme Score Drop


Meeradal wrote:

2 of 4, but I'm not even close to being maxed out. 


I don't think its the actual number, but the percentage.  There are other people who have experienced similar drops when 50% of cards were reporting balances, regardless of the actual utilization.

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Member
j_ayala
Posts: 7
Registered: ‎10-21-2011
0

Re: Extreme Score Drop

So FICO is not company we could trust? Because if your paid your doubt to try save money after take all your credit down to zero is bad , why? We have to still buying just for good credit?
Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Extreme Score Drop

Util factors in, they want to see how you handle the credit.  When your scores get to a certain point, it really doesn't matter.


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Frequent Contributor
Steelersboy
Posts: 343
Registered: ‎06-25-2013
0

Re: Extreme Score Drop


j_ayala wrote:
So FICO is not company we could trust? Because if your paid your doubt to try save money after take all your credit down to zero is bad , why? We have to still buying just for good credit?

fico is one of few we can actually trust

 
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