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09-10-2013 07:10 PM
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.
09-10-2013 07:29 PM
How many of your credit cards are reporting balances above $0?
09-13-2013 11:26 AM
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.
09-24-2013 09:37 AM
09-24-2013 09:59 AM
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.
09-26-2013 05:34 AM
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