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Score drop?

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dtulonghorn
New Member

Score drop?

MyFico score dropped to 705 from 721 after this last report, even though I have done nothing different. I have two credit cards right now, a Capital One MasterCard with a $350 limit and a Discover It Card with a $500 limit.  I pay both off in full every month, using the Capital One primarily for fast food or restaurants and the Discover for gas and groceries. Normally the Capital One has a balance of around $100-$130 by the time I pay it off when it is due and the Discover is generally about $225-$250 when I pay it off each month.

 

This month I did the same thing as normal, yet my score dropped 16 points and it said it was because of a balance change on the Capital One card. It says my previous balance on the card was $7, and the next month it was $57, showing a 714% increase. I am assuming that is the major reason for the drop in my credit score. However, I do not understand how I can prevent this from happening again in the future. Is there a specific time of the month that myFico checks your balances and stuff? If so can I change when I pay my Capital One card so that I have a better idea of what my balance on that account is and how it will effect my credit score. Right now I pay the Capital One card on the 14th of every month, while the Discover is due on the 2nd of each month. My balance varies at different times of the month just depending on what I am buying and I guess the month before they checked it at a time I had just paid it off and barely used it, while the next month I used it a few times before my balance was checked. So what should I do to prevent this in the future?

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llecs
Moderator Emeritus

Re: Score drop?

Your CCs report once per month, and they'll typically report the balance you had on the statement date. The best way to game the balances is to figure out when your CC statement cuts. You'll probably find that it's the same day each month. So, a day or two prior to the statement, pay the balance to whatever you want it to report and just shelve the card and not use it. Then once the statement generates it'll show that balance you wanted and you can use the card as much as you want for another 30 or so days without worry of a different balance reporting. Sometimes I'll tread each card as if it had two due dates...one for the actual due date and a second for the day or two leading up to the statement date (both dates are typically very close together). 

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