topic Re: How can I fix this score decrease? in Understanding FICO® Scoring

How can I fix this score decrease?

Anonymous — Tue, 06 Mar 2018 15:48:34 GMT

I had a $16 balance on my Synchrony Amazon card when it reported last month. I paid the balance in full and this month it reported at $0. Nothing else changed on my report. My score dropped 13-14 points with all three bureaus. WHY?

I'm an AU on two cards. If I let one of them report with a similarly small balance will that undo the damage? They both normally report at $0 and I leave a small balance on my Amazon card. I don't know what I was thinking paying it down to $0. Ugh!

Re: How can I fix this score decrease?

Anonymous — Tue, 06 Mar 2018 15:57:37 GMT

The AU cards should not be included in your utilization so leaving a small balance on once of them probably will not correct the drop in score. Need to show some sort of utilization on revolving accounts.

Re: How can I fix this score decrease?

Anonymous — Tue, 06 Mar 2018 15:59:25 GMT

Thank you. If I let it report with a small balance next month will that correct it?

Re: How can I fix this score decrease?

simplynoir — Tue, 06 Mar 2018 16:08:09 GMT

Yes, as long as it's on your Synch card.

Re: How can I fix this score decrease?

Anonymous — Tue, 06 Mar 2018 16:31:14 GMT

That's what I will do then. Thank you for your input.

Re: How can I fix this score decrease?

Anonymous — Tue, 06 Mar 2018 23:08:40 GMT

Always leave 1 with a small balance. And others at 0.

Re: How can I fix this score decrease?

Anonymous — Wed, 07 Mar 2018 02:27:21 GMT

As the others have stated, just let 1 small balance report and you'll be right back to where you were.

That's how FICO scoring works. Any event that drops your score X points, the inverse of the event raises it X points.

If you go from 1% utilization to 78% utilization and your score drops 81 points, going from 78% utilization to 1% utilization will make you gain 81 points.

If you have a negative item land on your credit report and your score drops 52 points, having that negative item removed would cause you to gain those 52 points back.

A new inquiry added may cause you to lose 7 points. Once it no longer counts (1 year mark) you'll see 7 points come back.

Etc.

Re: How can I fix this score decrease?

SouthJamaica — Wed, 07 Mar 2018 02:43:11 GMT

@Anonymouswrote:
I had a $16 balance on my Synchrony Amazon card when it reported last month. I paid the balance in full and this month it reported at $0. Nothing else changed on my report. My score dropped 13-14 points with all three bureaus. WHY?

I'm an AU on two cards. If I let one of them report with a similarly small balance will that undo the damage? They both normally report at $0 and I leave a small balance on my Amazon card. I don't know what I was thinking paying it down to $0. Ugh!

FICO 8 penalizes you for having all cards report zero balance. The penalty is removed if you have one card report a small balance.