Decrease in Balance results in -2 loss?

[fishbjc]

What's up with that?

[pizzadude]

I'm assuming this is a credit card you're referring to?  Revolving utilization is a major component of FICO scoring so what you're describing wouldn't be unusual.

[p-]

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@fishbjc wrote:

What's up with that?

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Hmm.  Let me take a look at your report.  Mmmm hmm.  Yes.  Oh, I see.  Aha!

There's your problem.

[fishbjc]

Why would a DECREASE in a balance result in a loss of points????

[fishbjc]

The problem -p is you're not following forum rules.  Rudeness is NOT APPRECIATED.  If you cannot be helpful, please find a different forum to be rude and obnoxious on as it's not welcomed on THIS FORUM.  Please refer to the 'stickies'.

[pizzadude]

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@fishbjc wrote:

Why would a DECREASE in a balance result in a loss of points????

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There are many, many examples where a decrease in revolving utilization lowers a FICO score.   All zeros across the board for revolving accounts isn't rewarded the most by FICO revolving utilization.

Ideal scenarios for some people is all cards reporting zero balances with one card reporting a small ( <9% ) balance.  You'll have to experiment to find the sweet spot.

Of course you're talking about 2 points here which is really a negligible difference ( less than 1% change ) so it could be another factor at play.   I wouldn't worry about it.

[p-]

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fishbjc wrote: The problem -p is ....

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Please excuse the sarcasm, I thought your post was a parody.  I didn't realize you were actually serious so I respondid in sarc mode.  My apologies.

The problem, Fish, is we can't really give you an answer absent any other information from your report.  You lack specifics; is it a credit card balance?  A loan balance? decrease from what to what?  What other items changed?  What was the before & after score?  Happy to help speculate.

[CrankyDave]

Two points? Hah, that's nothing. Just last month, I had a 26 point Equifax loss flagged with "Balance Amount Decrease" and "Balance Percent Decrease"... followed six days later by a 38 point jump for "Balance Amount Increase" and "Balance Percent Increase." The only difference was my BofA credit card reporting a balance of $118 instead of the usual $0. And when I try the score simulators, every single variable I play with results in a loss of 5 points. Absolutely nothing will make the score go up. So that's broken, too. This place's scoring system is either utterly broken or utterly insane. Either way, it's most definitely not worth the money I'm paying. 

[Barneygirl]

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@CrankyDave wrote:

Two points? Hah, that's nothing. Just last month, I had a 26 point Equifax loss flagged with "Balance Amount Decrease" and "Balance Percent Decrease"... followed six days later by a 38 point jump for "Balance Amount Increase" and "Balance Percent Increase." The only difference was my BofA credit card reporting a balance of $118 instead of the usual $0. And when I try the score simulators, every single variable I play with results in a loss of 5 points. Absolutely nothing will make the score go up. So that's broken, too. This place's scoring system is either utterly broken or utterly insane. Either way, it's most definitely not worth the money I'm paying. 

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Hey Cranky, I've been seeing the same thing!!!  Point LOSS for decreased utilization.... point INCREASE for increased utilization.  Sounds like someone got the algorythm in the program crossed lol  

BTW - I've thown the "simulator" out the window....it's useless IMO.  Last month it suggested that if I pay down $655 of my revolving balance it would gain me "up to" 15 points.... so, I experimented and paid down $655 of my revolving balance.... and I LOST 20 points!!!!!

[CrankyDave]

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@Barneygirl wrote:

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@CrankyDave wrote:

Two points? Hah, that's nothing. Just last month, I had a 26 point Equifax loss flagged with "Balance Amount Decrease" and "Balance Percent Decrease"... followed six days later by a 38 point jump for "Balance Amount Increase" and "Balance Percent Increase." The only difference was my BofA credit card reporting a balance of $118 instead of the usual $0. And when I try the score simulators, every single variable I play with results in a loss of 5 points. Absolutely nothing will make the score go up. So that's broken, too. This place's scoring system is either utterly broken or utterly insane. Either way, it's most definitely not worth the money I'm paying. 

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Hey Cranky, I've been seeing the same thing!!!  Point LOSS for decreased utilization.... point INCREASE for increased utilization.  Sounds like someone got the algorythm in the program crossed lol  

BTW - I've thown the "simulator" out the window....it's useless IMO.  Last month it suggested that if I pay down $655 of my revolving balance it would gain me "up to" 15 points.... so, I experimented and paid down $655 of my revolving balance.... and I LOST 20 points!!!!!

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The simulator is doubly useless for me since I have no credit card debt or loan debt now. I have no debt to pay down, so there's no way to improve my score through the usual "responsible behavior" method. I already pay all my bills on time, and that hasn't been helping my score at all. Taking out a car loan or mortgage both result in a 5 point drop. What's worse is that my score is 33 points lower now than it was before I had a few derogatories removed from my credit report a couple months ago.

Basically, cleaner report + zero car debt + zero CC debt = major score drop. Logic!

You can see why I'm "cranky".