Why Did My FICO Score Drop?!

Anonymous · ‎03-13-2016

Why did my FICO score drop by 13 points when I paid off a credit card balance and slightly lowered my mortgage balance? Shouldn't this result in an increase in my FICO score since I'm reducing my credit utilization ratio?

Anonymous · ‎03-13-2016

There could have been other factors that played into it, like new cards open, recent inquiries amongst other things, like if that credit card was your only one and now no card is reporting a balance.

Appleman · ‎03-13-2016

Noushie, welcome to myFICO forums!

Believe or not if you have all of you credit cards report a zero balance you take a hit in points.

Wisdom on this board is to have one card reporting between 1% utilization and 9% utilization. Use as many cards as you like just pay them off before the statement is generated. Only one card should report a balance for trying to maximize scores.

SouthJamaica · ‎03-14-2016

@Anonymous wrote:
Why did my FICO score drop by 13 points when I paid off a credit card balance and slightly lowered my mortgage balance? Shouldn't this result in an increase in my FICO score since I'm reducing my credit utilization ratio?

To answer your question would need to know:

1. how many credit cards you have, and limits and statement balances

2. what other loans you have, and limits and statement balances