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Paying off my CC = a bad thing?

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Anonymous
Not applicable

Paying off my CC = a bad thing?

It's been one heck of a week Smiley Surprised My Fico reports that my Experain score has gone down 10 points because the reported balance on my CC has gone from $392 (which is still under 30% utilization) to $0. I thought paying off your cards was a good thing? MyFico shows this as a plus under the factors portion of my report (you’ve limited the use of revolving credit) yet here I am 10 points less.

 

I can’t win!!! Smiley Mad

Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: Paying off my CC = a bad thing?

$0 blance on all revolving account is actually a negative.  Small balance on one. Zero on the others.

Message 2 of 5
NRB525
Super Contributor

Re: Paying off my CC = a bad thing?

OP, what else happened to your profile in the last month?

 

The reported pay down of your one CC is likely not the direct cause of a 10 point change, it is more likely part of some larger trend going on in your file, or as a result of a follow on re-adjustment after a recent increase in score. Thus, you have to take a longer view of the changes in your file, not just the one flagged with this score change.

 

Edit: Looking at your score, you've been on MyFICO for not yet a month, your score has increased by 34 points or so? That's a rapid score rise due to some significant positive change (moving above 700 at the same time) and so this 10 point drop is most likely just a recalculation / continuing readjustment as the algorithm tries to make sense of all the rapid fire changes in your file.

 

Congratulations on the score rise, welcome to the noise of FICO score changes Smiley Happy

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 3 of 5
NRB525
Super Contributor

Re: Paying off my CC = a bad thing?

OP, you are also double posting here with questions. Your score goes up, your score goes down. That's part of the FICO scoring noise. Each individual trigger is not isolated, it is part of the long term life of your credit file.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 4 of 5
Anonymous
Not applicable

Re: Paying off my CC = a bad thing?

This is right but make sure it is OVER 1%. I reported no balance on two, and $1 on the other. Should have reported over $30. Got popped 5 points
Message 5 of 5
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