New Visitor
Posts: 2
Registered: ‎04-20-2007

FICO score dropped!

I paid off a $3500 credit card last month. Couldn't wait to see if my score went up. It went from 625 to 603!!! I can't believe it! I feel so discouraged! I want to raise my score to buy a house in the future.I thought if I paid off one card at a time it would help...not hurt. I have a couple of cards with 300-500 limit. Should I close them as I pay them off? I've only had them for 6 months or so. Thanks for any info,
Posts: 8
Registered: ‎03-27-2007

Re: FICO score dropped!

Don't be discouraged, paying off revolving debt will help you tremendously in the long run.

DO NOT CLOSE YOUR ACCOUNTS! Having them on your report will give you a longer average age. Closing them will hurt your score in the long run. I would ask for credit line increases on your cards and use them occasionally, but responsibly. By responsibly I mean always make your payments on time, and try not to use more than 30% of your overall credit available...never use more than 50%, unless you have to.
Moderator Emeritus
Posts: 2,050
Registered: ‎04-17-2007

Re: FICO score dropped!

Summer - Great job on paying down the debt!
What probably happened is that you were in the "bucket" of people who have say $5,000 of debt.  You were rated at the top of those people because you were paying down the debt, paying on time, etc.  You paid off the card and you "graduated" to the next bucket.  Now you start at the bottom of those people because some of them have longer credit histories.  Hang in there, it will get better!  And I agree, do not close any accounts.
Bartender, bring another round of FICOtinis please!

9.4.2011: TU 805. EQ 815.
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007

Re: FICO score dropped!

Agreed.. Do not close any accounts. I assume your latest reports are showing your new balances?
Valued Contributor
Posts: 2,374
Registered: ‎03-15-2007

Re: FICO score dropped!

I wouldn't close the accounts. Yes, they're probably giving you a short-term hit because they are new, which dragged down your average age of credit lines. But in the long run, the accounts will help. And usually going from one "bucket" to another, as someone else pointed out, gives you a greater long-term potential to raise your scores.

You did the right thing, and you will be rewarded in the long run, even if you skinned your knee in the short run.
- - - -
in a credit-scoring postnuclear Stone Age...
Posts: 83
Registered: ‎03-22-2007

Re: FICO score dropped!

[ Edited ]
My fico dropped 11 points when I let Wells Fargo and Discover card run my report for a line of credit and credit line increase. They ran my credit two times.

Message Edited by antredd67 on 04-20-2007 05:37 PM

Message Edited by antredd67 on 04-21-2007 09:29 AM

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+