04-12-2013 02:21 PM
I recently paid off a small credit card and I wanted to see how it would affect my score. On Monday, it was still there. On Monday my Transunion FICO score was 717, showing 6 accounts with balances and 57% revolving usage.... Here's what I really don't get.... Today (Friday) it shows zero balance on the card I paid off. FICO now says I have 5 accounts with a balance and my usage dropped to 56%..... and my score dropped to 716?????? How is that possible?
04-12-2013 02:43 PM
That must be what it is. 2 cards went up slightly in balance but I paid more than that to pay off the 3rd card and I reduced my utilization by 1%. Here I thought I was doing good by eliminating a card and having my util rate go down.... lesson learned.
Thanks for the info.
04-12-2013 02:52 PM - edited 04-12-2013 02:53 PM
Your utilization will be scored as 30% of your FICO score; I learned just today that word has it that about half of that is overall utilization, and half is scored on the combined effects of individual card utilization.
When you say you paid off a card - did you also close it? Because if you did, then your total available credit would go down, and that has bearing on your utilization too. You do want your utilization to go down, that is a good thing. But it sounds like on a couple of other cards, your balance went up AND you lost a tradeline. Yes?
04-12-2013 04:12 PM
Oh crap, see if you can get the card reopened. Credit card companies have been pretty good to me, if the regular customer service person says they can't, talk to a manager. Explain that you thought what you thought and you made a mistake. If there really isn't a way they can't reopen it, at least you tried.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO