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I paid down a credit card last month (it wasn't a high balance, just $50) and just got an alert that my score droped over thirty points because of the balance decrease??? I'm confused why it would drop at all, let alone so much!
The balance decrease was the trigger for the update, not the reason for the score drop.
Did you happen to drop to 0% overall utilization?
Its likely something else occurred as well that didn't cause an alert.
Or....
You paid off all of your credit cards to a balance of $0.00, which will cause a score drop
Or....
This account reported as closed and it impacted your mix / AAoA at the same time.
Or....
The Fico gods have looked down upon you as a bigger risk because of what you ate for dinner last night.
I know when I paid off my student loan, which was reporting fine, nothing bad, just paid it off, I took a 20+ point drop. Didn't expect that, wouldn't have paid it off if I knew that was coming. In the end though, it was good, got it paid off.
Dan
Wow. Yeah, I did, both cards were paid off and I never got around to using them for anything else last month. I'd read somewhere that you do need to use the revolving credit, so I usually charge something small each month. I had no idea not using them for a single month would impact the score that much, though.
I had a redeemable report for that bureau, so I took a look--nothing new was on it. So it must be the zero util. Guess I should be expecting similar alerts for the other two, then.
@Anonymous wrote:Wow. Yeah, I did, both cards were paid off and I never got around to using them for anything else last month. I'd read somewhere that you do need to use the revolving credit, so I usually charge something small each month. I had no idea not using them for a single month would impact the score that much, though.
I had a redeemable report for that bureau, so I took a look--nothing new was on it. So it must be the zero util. Guess I should be expecting similar alerts for the other two, then.
Well, the good news is that utility has no memory, so if you report a non-zero util this month, you should get those points back.
That is good to know, thank you. We're still trying to figure out all this credit score voodoo, clearly still have a lot to learn Thanks everyone for the quick responses.