Why is credit simulator dropping score 40+ points?

[Anonymous]

I recently did a credit simulator using Credit Karma & Creditwise. I dont have a large total balance of revolving credit VS my credit availability, which is not much as I've been rebuilding since Feb 2016.

$5250 available / $870 owed

On both simulators I put in to pay off my entire balance, also tried $500, $250, and even $100. If I payed all $870 it was dropping my score 44 points.. The others were 40 points, etc. Even CK said that must be wrong because usually dropping utilization would raise, not lower my score.

Anyone ever have this happen? I definitely don't want to lower my score.

Here is my current situation to help answer any questions you might have, or to help why this would happen.


Started @ 499 Fico after lost all my cards (no BK) in 2008/2010 recession hit me.

My scores are far from great and I've been rebuilding back since Feb 2016. Started with unsecured Cap1 Plat credit builder @ $100 SL moved to $500, several store cards to help raise my scores, new car Dec 2016 through Cap1 Auto, and recently a Cap1 QS1 with $500 SL

I'm now sitting at Fico 8 scores of TU 619, EQ 623, EX 618.

I don't have a lot of credit available (sitting at about $5250 total). I have 100% payment history last 18 months (no negative marks on any credit lines). I have 0 baddies & 0 public records. I have about 8/9 INQ on each bureau. I'm currently using about 32% of my credit, mostly because I have a large mattress purchase balance running on a store card @ 18 months 0% apr. Everything else I usually PIF or carry small balance 2 months.

Current cards (32% utilization overall) only because my recent $500 CLI and $2350 in available credit has not hit my reports yet because the cards haven't shown up yet (too recent). My utilization should drop significantly after they do.

[Anonymous]

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@Anonymous wrote:
I recently did a credit simulator using Credit Karma & Creditwise. I dont have a large total balance of revolving credit VS my credit availability, which is not much as I've been rebuilding since Feb 2016.

$5250 available / $870 owed

On both simulators I put in to pay off my entire balance, also tried $500, $250, and even $100. If I payed all $870 it was dropping my score 44 points.. The others were 40 points, etc. Even CK said that must be wrong because usually dropping utilization would raise, not lower my score.

Anyone ever have this happen? I definitely don't want to lower my score.

Here is my current situation to help answer any questions you might have, or to help why this would happen.


@Started @ 499 Fico after lost all my cards (no BK) in 2008/2010 recession hit me.

@Anonymous scores are far from great and I've been rebuilding back since Feb 2016. Started with unsecured Cap1 Plat credit builder @ $100 SL moved to $500, several store cards to help raise my scores, new car Dec 2016 through Cap1 Auto, and recently a Cap1 QS1 with $500 SL

I'm now sitting at Fico 8 scores of TU 619, EQ 623, EX 618.

@I don't have a lot of credit available (sitting at about $5250 total). I have 100% payment history last 18 months (no negative marks on any credit lines). I have 0 baddies & 0 public records. I have about 8/9 INQ on each bureau. I'm currently using about 32% of my credit, mostly because I have a large mattress purchase balance running on a store card @ 18 months 0% apr. Everything else I usually PIF or carry small balance 2 months.

Current cards (32% utilization overall) only because my recent $500 CLI and $2350 in available credit has not hit my reports yet because the cards haven't shown up yet (too recent). My utilization should drop significantly after they do.

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Paying all down to 0 would drop your score. One card having a less than 10% balance is optimal. It's possible that your hit from all 0 balances would drop you into a lower bucket causing a complete rescoring based on that bucket. Algorithms are complex and so is financial risk. Different groups of numbers in the scoring system are handled slightly different, because the behavior in these groups is also different. Someone with a bad credit score is more likely to have a problem with a lot of available credit than a person with an exceptional score. 

[NRB525]

Don't pay the card balances to zero. Keep using at least one card for regular daily spend and ensure one card (preferably not a store card) is reporting a balance consistently. The store cards are something of a problem in this regard because to keep a balance reporting you have to spend money at that store, and you might not really need to spend money at that store.

Let the new credit limit increases report, then see how that helps. At low 600's scores there is likely something back in the past which the FICO score does not like.

Are there any negatives beyond, earlier than, 18 months back? Late payments? charge off? collections? Those would still be influencing score even if from 2010, until they drop off completely.

And I would not follow a CK Simulator. Just keep paying on time, let any negatives expire, and your score will recover nicely.

[Anonymous]

Thanks for the replies. This is all very helpful information.

My plan was to start gardening to let the new credit and cli's hit my account (which almost doubled my availability). Also continue to pay on my Cap1 QS1, which I put all my bills through. The limit is not high enough @ $500 so I've been paying weekly to ensure enough available to keep paying bills for the month and get the 1.5% cashback.

I've also been using the Walmart card @ Sams Club for weekly gas to get the 2% back (hopefully in the future I can get the Sams M/C for 5%). That card I also pay weekly or bi-weekly.

I've kinda stopped using the Cap1 Plat now that I have the QS1 because I like the cashback. I dont really see the benefits of this card anymore. I keep my Netflix on it as a low use to show im active. Hoping for another CLI in the future and eventually PC to merge with QS1.

I'm using the HSN card for a 18 month 0% apr purchase and once that is payed I would only use occasionally 2-4 times per year.

My other few store cards I have used and PIF but I didn't want to pay a bunch of different cards every month so I pretty much sock drawered them for 1-2 times per year usage.

I currently have 0 collections & 0 public records. I did though from 2008/2010 and most recently the last 2 collections expired and were removed. I disputed a couple others in late 2016 and those were removed. I did have a 2k judgment (rental) public record (plaintiff never pursued) that expired and was removed last month.

My payment history is showing 100% on all current credit lines & auto loan. My previous auto loan had 100% payments last 18 months but did have several 30 day lates and a 60 day late before that. That car was repossessed in 2010 but I got it back and eventually payed that loan off in 2015. That account is showing "closed" on my credit as balance $0 payed as agreed.