Understanding FICO® Scoring

[dennis3]

We currently are refinancing our home and paid off all credit card balances and in turn our score droped 12 points.  Is this because of the inquires or because of the  0 balances on our credit cards?

We have worked so hard to improve to see it drop was very dissapointing, is this normal and how soon will it raise again?

[Tuscani]

---

dennis3 wrote:

We currently are refinancing our home and paid off all credit card balances and in turn our score droped 12 points.  Is this because of the inquires or because of the  0 balances on our credit cards?

We have worked so hard to improve to see it drop was very dissapointing, is this normal and how soon will it raise again?

---

Recent inquiries will drop your score. But paying off cards should increase your score. What was your util prior to your last payment?

[Bull32]

I have found that paying off your cards entirely all at one shot will in fact hurt your score initially.  If you pay down like 75% or so is better.  I believe they say that 7 to 10% utilization is the average. 

[Tuscani]

---

Bull32 wrote:

I have found that paying off your cards entirely all at one shot will in fact hurt your score initially.  If you pay down like 75% or so is better.  I believe they say that 7 to 10% utilization is the average. 

---

1-9% seems to be "the sweet spot".

[smallfry]

---

Tuscani wrote:

---

Bull32 wrote:

I have found that paying off your cards entirely all at one shot will in fact hurt your score initially. If you pay down like 75% or so is better. I believe they say that 7 to 10% utilization is the average.

---

1-9% seems to be "the sweet spot".

---

I better hurry up and charge something quick then.