Scores went down after credit card balances were paid off

[FireMedic1]

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@Anonymous wrote:

@Exactly as @simplynoir said.

I recently had planned to leave a $3 balance at statement cut on one card but forgot and paid it in full.  My FICOs all dropped up to 20 points within a week because of my mistake of paying that card in full and none of my other cards reporting a balance.  Waiting til 5/15 for a different card to post a $5 balance at statement cut and the score should rebound back up.

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+1 Rebounded the next month.

[Steelersboy]

They don't teach this stuff in school!

[Anonymous]

I really wish the mods would consider making a Sticky Thread on this subject, as it comes up just about every day on this forum.

[chaparritaboricua]

No they don't. Wish they did.

[Anonymous]

Not true. I have credit card utilization. I just paid off a credit card for $49 and my score went down 16 points on one and 3 points on the other 2.
FICO scores are BS.

[Anonymous]

If that $49 was your only reported balance and it just reported as $0, yes you'd lose around 16 points. If you have another revolver with a reported balance, the $49 being paid off and reporting $0 is not what caused your score drop.

[Anonymous]

I have multiple credit accounts. I have 3 credit cards with 0 balance. When I paid the $49 off I got a credit alert from myFICO that said you paid off $49 and Experian and one other dropped my score by 3 points. 

[Anonymous]

So, was the $49 reported balance your only credit card account with a reported balance?  Then it reported $0, so you went to none with reported balances?

If so, that was the reason for your score drop.

You say you have multiple credit accounts and then say you have 3 with zero balances, but aren't clear as to whether or not those 3 are your only three, or if you have more and just 3 have $0 balances.

[Anonymous]

I have 3 cards total. All 3 now have 0 balances. I havent missed a payment in 2 1/2 years. Nothing changed with my credit except I finally paid off this ls card.

[Anonymous]

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@Anonymous
I have 3 cards total. All 3 now have 0 balances. I havent missed a payment in 2 1/2 years. Nothing changed with my credit except I finally paid off this ls card.

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That's why your score dropped then.  You have all $0 balances reported, meaning that the FICO algorithm sees "no revolving credit use" which adversely impacts your scores to the tune of 15-20 points usually.  You can overcome this almost immediately, though, by letting one of your cards report a small balance.  It can literally be a cup of coffee and a donut purchase, it doesn't have to be major.  Once that balance reports, you'll get back all of the points you lost immediately.  Going forward to avoid that penalty, simply allow 1 of your 3 cards to report a tiny balance while the other 2 report $0 balances.