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Interesting reason for 9 point jump

New Member

Interesting reason for 9 point jump

Your FICO® score has gone up to 765 on July 25, 2013.
Target score alert: Your FICO® score has exceeded your target score of 760.
Your FICO score may have gone up because the following factor is not hurting your FICO score as much as before:

You have too many credit cards carrying balances.

I have been around for a few years. I have learned a lot. i am definitely seeing the beef invites of understanding what actions impact my FICO score. I never expected to see that as a reason for a score increase!

About me.... Paid off all CC debt in 2009. I generally don't carry a balance on any credit cards, but do let at least one card report. This year I carried a balance on about 6 cards, my average CL is 25k and the balances a were about 2.5k ( so less than 10%\card ). Last month I paid off 3 of the cards. When the third card reported the zero balance, this alert popped up.


Message 1 of 12
11 REPLIES
Established Contributor

Re: Interesting reason for 9 point jump

Nice!!

Amex Platinum Amex PRG Amex Hilton Surpass ($7k) Citi AAdvantage WEMC ($20k) Citi Hilton Honors VS ($6.8k) Dillard's Amex ($7.5k) Discover it ($6.5k) FNBO Chrysler MC ($30k) Military Star Card ($4.8k) Nordstrom VS ($25k) PenFed Power Cash Rewards VS ($20.5k) Ritz-Carlton VI ($54.5k) Starwood Preferred Guest Amex ($10k) Susan G. Komen WMC ($38k) Kinetic CU Visa ($10k) US Bank Cash + VS ($16k) Sears MC ($6k) USAA Limitless VS ($15k) Walmart MC ($7.5k) AAdvantage Aviator Silver WEMC ($11.3k)
Message 2 of 12
Established Contributor

Re: Interesting reason for 9 point jump

cool

 

Total Overall Credit Limit- $325k
Message 3 of 12
Frequent Contributor

Re: Interesting reason for 9 point jump

I will definitely keep this in mind.


If a man empties his purse into his head, no one can take it from him. An investment in knowledge always pays the best interest. - Benjamin Franklin |Capital One Quicksilver Cash Rewards|Chase Amazon Visa Rewards|BOA Cash Rewards|Walmart Mastercard|Commence MC| Citi Double Cash| Amazon Prime Store Card|Discover It|Chase Freedom|Chase Freedom Unlimited|Amex BCE|Wells Fargo Cash Wise|Barclays Cashforward
$83,300 total card credit FICO Equifax-803, FICO Transunion-791, FICO Experian-771 , DTI-3.4%
Message 4 of 12
Frequent Contributor

Re: Interesting reason for 9 point jump

Which of the three CB was that? I am guessing it was TU but it only a guess.
Message 5 of 12
Established Contributor

Re: Interesting reason for 9 point jump

had that happen earlier this year. i had a brief period where i had no cards reporting a balance, and my score went up 8 points. then i had a small balance report, and i lost 5 points again. that was my equifax. sounds like OP's score is from EQSW.

EQ-736(08/14) TU-752(09/14)
Newest to Oldest
Barc Sallie Mae 6K | Citi TY Pref 4.5K | US Bank Cash+ 10K | Chase Freedom 11.7K | Disc It 10.5K | Amazon Store 2.5K | BOA Cash Rewards 10.5K |

Closed Cards: 4 Oldest: 3yrs AAOA: 2yrs
Message 6 of 12
New Contributor

Re: Interesting reason for 9 point jump

I think the distinction here is that it stated the reason is "not hurting your score as much as before" rather than "your score increased because of."  Carrying balances on too many cards does lower your score, and since you've paid off some cards, the negative effect of that has been reduced.  The logic seems to make sense to me.

Ch7 BK discharged 3/2009
Bloomies (10/99): 4k Alliant (8/10): 4k
SCEFCU Visa (9/12): 6k SCEFCU auto (9/12): 22k
Barclays Apple (10/11): 5k iTunes: 3k SLM: 15k
Amazon (8/12): 15k Walmart store (9/12): 6K
Partners (9/12): 20k CapOnex2 (1/10): 10k Discover IT (3/13): 5k
SDFCU: 20k Amex BCE: 8k
Message 7 of 12
Senior Contributor

Re: Interesting reason for 9 point jump

The # of cards w balances effect on fico is one of the most difficult to determine imo
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Message 8 of 12
New Member

Re: Interesting reason for 9 point jump

It is my score watch from here... EQ.

 

I agree that this is an expected response for paying off debt.  I was just surprised because I still have 3 reporting balances and I was not expecting to see any change based on paying off half the debt.  The entire time all cards were less than 10%.  So... Just surprised.  And I agree with youngandcreditwthy, the impact of the # of cards reporting balances has to my credit score is hard to define.

Message 9 of 12
Moderator Emerita

Re: Interesting reason for 9 point jump

Message 10 of 12