His & Hers FICO Scores don't make sense
11-02-2012 02:33 PM
All of our credit is in both my husband’s and my name. We share everything. We signed up for score watch because we want to refinance and take advantage of the lower rates. Our scores are decent, but low because we try to pay cash for items we purchase and not use credit. On 8/15, his score was 741--her score was 723.
On 9/8/2012 we both paid off our student loan debt. His score dropped from 741 to 728. Her score increased from 723 to 727. On 9/13/2012 we paid off our 2nd mortgage. His score stayed the same at 728. Her score stayed the same at 723. On 9/20/2012 we started the refinance process. Bank #1 ran credit report. His score dropped from 728 to 713. Her score dropped to 712. On 9/26/2012 balance on credit card is $49 and his score is raised from 713 to 716. Her score raised from 712 to 715. On 10/15/2012 Bank #2 ran credit report. His score stayed the same at 716. Her score stayed the same at 715. On 11/2/2012 balance on credit card is $1,478. His score dropped from 716 to 702. Her score raised from 715 to 719. Note, the credit card is not reported as of the day of the statement (last statement cutoff date balance was zero) nor on the last day of the month (on 10/31/2012 balance on credit card was zero). My question is why does a credit card charge which equals less than 30% of available credit cause one of the two creditors’ score to drop by 14 points while raising the other creditors’ score? So we are penalized for managing our credit by acquiring only the amount of credit we need and paying down our debts as quickly as we can afford to and paying for credit card charges in a timely fashion. These score changes do not make sense.