Hello everyone, I've been monitoring my FICO with ScoreWatch for over a year and a half now with great success. I started with a 606 and got it up to a 719 on 9/12/2007. I just received an e-mail from the ScoreWatch saying one of my accounts (my Chase card) has a balance increase of a whopping (notice my sarcasm) of $30! In turn, my score has dropped 46 points to a dreadful 666. What's the deal?! I use my card frequently and pay off the balance every month.
Here's a graph of my score drop:
http://i10.tinypic.com/8f3ml3t.png
Here's exactly what the notification said:
CHASE (XXXXXXXXXXXX9310)
New balance: $30
Show/Hide Details
Account opened: 3/2007
Description: Credit card
Amount in H/C column is credit limit
Previously reported Newly reported
Account balance: $0 $30
You received this alert because this balance which was previously $0 increased to $30. You can change the settings for this kind of alert here.
Contact: CHASE, PO Box 15298, Wilmington, DE, 198505298 • (800) 955-9900
How balance increases impact your score:
A balance increase on an account may lower your FICO® score.
A large balance on an account, or balances on many accounts, can be a sign that you may be having trouble paying back debts. Since your FICO® score measures the chances that you will pay back a debt, larger balances or balances on more accounts can lower your score.
"Maxing out" a credit card or other line of credit is when the balance on the account comes close to the account's credit limit. This can dramatically lower your FICO® score because it is often a sign of a consumer who desperately needs credit and may not be able to pay it back.
The drop in your FICO® score caused by a balance increase can be reversed by paying down the balance.
Message Edited by jgomez on
11-19-2007 12:13 PM