topic Re: Random Drop on Experian - Stressed in Understanding FICO® Scoring

Random Drop on Experian - Stressed

sunnydropgt — Sat, 08 Oct 2022 16:54:59 GMT

Hello! Wondering if anyone has any insight as to why a score on Experian will randomly drop by 14 points. I have a reported utilization of 0% but this morning I received the alert that my score dropped by that much. The only recent event that has happened was a fraudulent charge on a Discover card for a low amount ($10) from Amazon of all places. Discover had reissued me a new card and number immediately. Does this affect credit score?

Thank you!

Re: Random Drop on Experian - Stressed

CreditCuriosity — Sat, 08 Oct 2022 18:07:24 GMT

Not sure what your score is, but 14 points is a drop in the bucket tiny point loss for whatever reason. FICO has no memory. To answer your questions no a re-issued card has no effect on your FICO score. 0% utilization is a bad thing when coming to scoring. Want 1 card to at least report a 1%+ balance if trying to maximize scores.

A few months ago I recently dropped 70 points from an 840+ scores to 770's depending on scoring model due to a new home hitting my report, a new car a car being paid off and some new CC accounts along with inquiries associated with it. I know my scores will be back in the 830-840 range within a year. Just alot of things going on with credit being maxed installment loan. Read up on the scoring section of this forum and you wil learn alot of insight.

Re: Random Drop on Experian - Stressed

SouthJamaica — Sat, 08 Oct 2022 21:07:02 GMT

@sunnydropgt wrote:
Hello! Wondering if anyone has any insight as to why a score on Experian will randomly drop by 14 points. I have a reported utilization of 0% but this morning I received the alert that my score dropped by that much. The only recent event that has happened was a fraudulent charge on a Discover card for a low amount ($10) from Amazon of all places. Discover had reissued me a new card and number immediately. Does this affect credit score?

Thank you!

Sounds like you might have been visited by the All Zero penalty... which occurs when all revolvers report zero balance

Re: Random Drop on Experian - Stressed

sunnydropgt — Sat, 08 Oct 2022 22:06:31 GMT

I had no idea that was even a thing. Everywhere was saying that a zero balance is good to keep the utilization rate low. Thanks for the insight though! So I guess I should keep it low but above $0...?

Will having like 1% this next month bounce it back?

Re: Random Drop on Experian - Stressed

SouthJamaica — Sat, 08 Oct 2022 23:05:32 GMT

@sunnydropgt wrote:
I had no idea that was even a thing. Everywhere was saying that a zero balance is good to keep the utilization rate low. Thanks for the insight though! So I guess I should keep it low but above $0...?
Will having like 1% this next month bounce it back?

it's good to have a lot of zero balances

but one bank card should be allowed to report a small balance before you pay it off

it's ridiculous but it is what it is

Re: Random Drop on Experian - Stressed

GZG — Sat, 08 Oct 2022 23:09:46 GMT

@sunnydropgt wrote:
I had no idea that was even a thing. Everywhere was saying that a zero balance is good to keep the utilization rate low. Thanks for the insight though! So I guess I should keep it low but above $0...?
Will having like 1% this next month bounce it back?

~1% or >$2 on a national bank credit card that isn't a store card, credit union card or charge card or Chase or US bank

Re: Random Drop on Experian - Stressed

Zoostation1 — Mon, 10 Oct 2022 03:49:35 GMT

@GZG wrote:
@sunnydropgt wrote:
I had no idea that was even a thing. Everywhere was saying that a zero balance is good to keep the utilization rate low. Thanks for the insight though! So I guess I should keep it low but above $0...?
Will having like 1% this next month bounce it back?
~1% or >$2 on a national bank credit card that isn't a store card, credit union card or charge card or Chase or US bank

Whiel I don't have a US Bank card, I thought they were ok to use for the AZEO card as long as you account for them reporting at the end of the month and not when your statement closes?

Re: Random Drop on Experian - Stressed

720orBust — Wed, 12 Oct 2022 06:17:06 GMT

It's great to keep it low under 10%. But I didn't know 0% would be bad. Good to know

Re: Random Drop on Experian - Stressed

GZG — Wed, 12 Oct 2022 06:22:56 GMT

@Zoostation1 wrote:
@GZG wrote:
@sunnydropgt wrote:
I had no idea that was even a thing. Everywhere was saying that a zero balance is good to keep the utilization rate low. Thanks for the insight though! So I guess I should keep it low but above $0...?
Will having like 1% this next month bounce it back?
~1% or >$2 on a national bank credit card that isn't a store card, credit union card or charge card or Chase or US bank

Whiel I don't have a US Bank card, I thought they were ok to use for the AZEO card as long as you account for them reporting at the end of the month and not when your statement closes?

Yeah that's correct. I guess I'm just fortunate to have all of my current cards due within 2 days of each other. Dealing with end of month US bank shenanigans would annoy me to no end.

Re: Random Drop on Experian - Stressed

Zoostation1 — Sun, 16 Oct 2022 05:01:43 GMT

When I had 2 cards I initially thought it would be good to have them around the same time, but now with 3 I like that they close at different times (it's easier for AZEO imo). My only minor complaint is I wish Capital One closed on the same date each month instead of counting back 25 days from the following due date.

Re: Random Drop on Experian - Stressed

FICOSALIE — Sat, 22 Oct 2022 02:32:01 GMT

OMG! I had the same thing happen on 10/14/2022. I paid off my only balance almost 11 card accounts. This brought my utilization to under 1%. It dropped my score 65 points!!!

I called FICO customer support to see what I was missing... I asked how the scoring is determined. The agent said "it's an algorithm" I said great may I see what it consists if? She said "no, it's a secret". I find this to be highly disturbing.

I feel your pain.

Re: Random Drop on Experian - Stressed

sunnydropgt — Sat, 22 Oct 2022 02:39:34 GMT

@FICOSALIE wrote:
OMG! I had the same thing happen on 10/14/2022. I paid off my only balance almost 11 card accounts. This brought my utilization to under 1%. It dropped my score 65 points!!!
I called FICO customer support to see what I was missing... I asked how the scoring is determined. The agent said "it's an algorithm" I said great may I see what it consists if? She said "no, it's a secret". I find this to be highly disturbing.
I feel your pain.

Ugh sorry to hear that for you. This country rewards debt so they can leech on interest. I read that having a zero balance makes credit bureaus think you're going into financial trouble. I'll never understand that concept. The credit system is so frustrating and unclear.

Re: Random Drop on Experian - Stressed

Revelate — Sat, 22 Oct 2022 23:28:29 GMT

@GZG wrote:
@sunnydropgt wrote:
I had no idea that was even a thing. Everywhere was saying that a zero balance is good to keep the utilization rate low. Thanks for the insight though! So I guess I should keep it low but above $0...?
Will having like 1% this next month bounce it back?
~1% or >$2 on a national bank credit card that isn't a store card, credit union card or charge card or Chase or US bank

Why Chase? Yeah if you pay it to zero later they will report zero but you just cut the new payment before the due date which gets rid of the remaining statement balance.

Small modification to the PIF strategy but not hard to get around. CFU at 21/25000 is my AZEO card prepped for a mortgage pull.

Re: Random Drop on Experian - Stressed

OmarGB9 — Wed, 26 Oct 2022 19:45:16 GMT

@FICOSALIE wrote:
OMG! I had the same thing happen on 10/14/2022. I paid off my only balance almost 11 card accounts. This brought my utilization to under 1%. It dropped my score 65 points!!!
I called FICO customer support to see what I was missing... I asked how the scoring is determined. The agent said "it's an algorithm" I said great may I see what it consists if? She said "no, it's a secret". I find this to be highly disturbing.
I feel your pain.

The FICO algorithms are proprietary and protected info. Even if they wanted to tell you, the MF support agent wouldn't know about it.

In any case, you likely got hit with the All Zero Penalty, as mentioned above with the OP. Although 65 points is a lot for just that all zero Penalty. I'd go over your reports very thoroughly if I were you.