Credit Card Center Advertiser Disclosure†
03-19-2014 06:22 PM
I am trying to improve my credit to get a renovation loan. So this month I put a few thousand dollars toward my credit cards. However, this actually made my FICO score DECLINE! I am not understanding why. I did not pay them completely off and I have no other marks. I was 2 points away from a new loan and now I am 12. It is so frustrating. I haven't foudn anything that expalins why this might happen. Any ideas?
03-19-2014 06:47 PM
Are you certain that the score was calculated based on updated balances on your reports?
The fact that you've paid down a balance may not be reflected on your report for some time.
Also, where are you getting your scores from?
03-19-2014 08:26 PM
I got the scores from here. It also shows the updated balances. I cannot figue out what happened. There is nothing else new on my report. I can't figure it out.
03-20-2014 06:28 AM
I don't know the answer based on the information available.
Beyond issues of reporting and updating, another angle might be to ask how much your payment lowered your utilization.
Typically the best score improvements occur when utilization is lowered dramatically, for example from 80% to 10%. In contrast, lowering your utilization from say 60% to 50% will not have nearly the same effect.
FICO scoring also looks at per-card utilization, and high individual utilizations or maxing out a card hurts you, as does a high proportion of cards with balances.
Beyond the utilization angle, it's worth asking if anything else has changed -- derogatories showing up, new accounts, lowered AAoA, hard pulls, and so on.
03-20-2014 06:47 PM
Compare the score reasons on the credit report before you made the payments and the credit report after you made the payments. The score reasons are in order of impact. What changed is the there a new score reason or did the order of the reasons change or both? Below is a link that might help you with the score reasons meaning. Hope this helps
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.
* 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.
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.