Unusual score drop

[Anonymous]

Hello, I received an alert today that my FICO Experian score dropped 17 points after my $0 Discover balance was reported. Can anyone tell me why??? I pay off my cc in full each month and would have thought this would have helped boost my score. My credit limit is 4500, I had a balance of 1310, paid it in full before the due date and have not used it since. How I am explaining properly.

[DollyLama]

Is this your only card? 

If not, did ALL CCs report a zero balance?

Optimal scoring is rather you have one card or 10 cards, have all at zero balance when statement cuts, except 1, with a maximum 8.9% utilization of that one card's credit limit. FICO does not like all zero balances. 

[Anonymous]

I have an issue were my score dropped 24 points in a short period of time. The only difference was a collection account was deleted. Ordinarily when a collection account is removed, the score INCREASES rather than DECREASES. Anyone have any suggestions? My Fico have no logical explanation. 

[elim]

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@Anonymous wrote:

I have an issue were my score dropped 24 points in a short period of time. The only difference was a collection account was deleted. Ordinarily when a collection account is removed, the score INCREASES rather than DECREASES. Anyone have any suggestions? My Fico have no logical explanation. 

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I had this happen. I had a very old collection account removed, This caused the AAoA of my thin file to lower drastically, which weighed more (score wise) than the actual old collection. It's better to have a clean file so don't worry, your scores will improve soon enough.

[Anonymous]

But I have at least ten other open accounts, none past due. So it makes little sense to me why it dropped. The same account was dropped from a different bureau and the result was an increase. I was at 669 now I'm at 645. I've worked hard to get there from a low of under 600.

[SouthJamaica]

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@Anonymous wrote:
Hello, I received an alert today that my FICO Experian score dropped 17 points after my $0 Discover balance was reported. Can anyone tell me why??? I pay off my cc in full each month and would have thought this would have helped boost my score. My credit limit is 4500, I had a balance of 1310, paid it in full before the due date and have not used it since. How I am explaining properly.

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Was this your only open credit card account?

[Anonymous]

No. I have an Amex, 2 Capital One & Macy's. All paid on time and in full. I was shocked to say the least. I also have no collections. Any ideas?

[Anonymous]

Yes, all were zero balance.

[sarge12]

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@Anonymous wrote:
Hello, I received an alert today that my FICO Experian score dropped 17 points after my $0 Discover balance was reported. Can anyone tell me why??? I pay off my cc in full each month and would have thought this would have helped boost my score. My credit limit is 4500, I had a balance of 1310, paid it in full before the due date and have not used it since. How I am explaining properly.

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If paying off that card means you have all cards at 0, that could cause a drop, because the credit report would show no revolving credit usage. For best results you would need 3 cards, and have only 1 of those cards report a small usage less than 9% of total credit limits and under 29% of that cards usage. This is commonly refered to as AZEO. If the drop was due to showing no credit usage, just allow 1 card to report next cycle and you will get those points back and probably more due to lower utilization. Utilization history at this time is not used for Fico 08, but may be in future fico models, and the newest model of VS reportedly does use trended data.

[Anonymous]

THANK YOU!!!