Perfect credit Score down 70pts!!

[Anonymous]

  I used to have a 726--740 for the longest time I have a 173k balance on mtg--1 Bof A ccard 7,500 limit/inter month spending--3,000 but pay off every month. 2. Bof A  biz c card 10,000  never used. 3. city home depot/inter month 400 but pay off every month. 4. AMEX biz card 8,000 never used and 5.-My Capitol one card. I just started using the Capitol One card and when I had a 1,100 balance I got an alert from Equifax that my score dropped from 726 to 687!! I paid off the card that day. Then I used the card again and ran it to 2350.00 and I got another alert dropping my score to 657!!! OUCH!!!!  I believe I understand what happened but I believe that using your credit cards and paying off the balance in FULL should be considered a ZERO balance since the debt is not actually used to "supplement" my lifestyle therefore, I am NOT becoming a higher risk but in fact because I can pay IN FULL should demonstrate my consistancy and reliability. Is there someone I can talk to to return my score?  Thank you-----

Edit by cheddar to remove full name.  Please refrain from posting personally identifiable information in your posts.

Message Edited by cheddar on 06-12-2008 08:05 PM

[Anonymous]

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Charles wrote:

  I used to have a 726--740 for the longest time I have a 173k balance on mtg--1 Bof A ccard 7,500 limit/inter month spending--3,000 but pay off every month. 2. Bof A  biz c card 10,000  never used. 3. city home depot/inter month 400 but pay off every month. 4. AMEX biz card 8,000 never used and 5.-My Capitol one card. I just started using the Capitol One card and when I had a 1,100 balance I got an alert from Equifax that my score dropped from 726 to 687!! I paid off the card that day. Then I used the card again and ran it to 2350.00 and I got another alert dropping my score to 657!!! OUCH!!!!  I believe I understand what happened but I believe that using your credit cards and paying off the balance in FULL should be considered a ZERO balance since the debt is not actually used to "supplement" my lifestyle therefore, I am NOT becoming a higher risk but in fact because I can pay IN FULL should demonstrate my consistancy and reliability. Is there someone I can talk to to return my score?  Thank you-----

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Unfortunately, no, there is nobody you can talk to to get your score back.  This is just the way the scoring system works.

You are scored based on the balances that appear on your reports.  The balances that appear on your reports are the balances that the CCCs report to the CRAs, usually the statement balance.

If you pay your CC balance off before the statement generates, so that your statement balance is $0, then the CCC will report to the CRAs that you have a $0 balance, and you will be scored accordingly.

FICO does not care that you pay your balance in full every month.  All FICO cares about is how much of your available credit you are using, and whether you pay it off or not, there is no denying that you are using it.

edited by Mas to remove OP's name

Message Edited by masdeocho on 06-13-2008 11:46 AM

[Anonymous]

Hi Charles,

I am pretty sure Capital One reports credit limits now, but the fact that they didnt made me cancel my card with them. I dont like their practices at all. I know this isnt related to your problem, but I would cancel that card anyway. Im sure you can get a better one based on your scores.

Dave.

[Anonymous]

How long was it since you used your Capital One card??  If it has been a while that could be it....Starting to reuse a dormant card scares FICO because you suddenly threw $1100 on it when you never used it before....It thinks you are in trouble.

Give it a couple of months, it will go back up.

[Anonymous]

FICO scoring is often spooked by sudden, significant spikes in credit card balances, or the appearance of new accounts. Fortunately, paying the balances down tends to "soothe the beast" and help regenerate your score.

[Anonymous]

If I were you I would ask for a CLI on your BOA card that you use the most. If you are putting 3k through the card every month you should have at least a 15k credit line with them. I would do the same with Citi. Unless you are getting rewards from capital one I would just put a small purchase on that card every 3 months and pay in full before the statement hits.

You might not have to worry about doing this but it will maximize your scores. It sounds like you have a great income - you shouldn't get dinged just because you haven't exploited your credit to the fullest. Call up those banks and let them know what you make and what you put through their cards every month and then you won't have problems like these scoring dings. With low until (9% or less) I bet your score would be 760+

[marty56]

Yes I got a real boost when I went from 10% to 9% util.  EX and TU really likes that.