topic Re: 5 Point Increase for Balance Increase?? in Understanding FICO® Scoring

5 Point Increase for Balance Increase??

EW800 — Sun, 01 Jun 2014 16:15:25 GMT

Hi Everyone.

Just wondering what you make of this. I received notification this morning from SW that I had a score change (are you like me, almost afraid to look, wondering which direction it means!). It was a score increase from 712 to 717! Obviously, I was VERY thankful, as I have been on a major rebuild campaign over the past 18 months or so, following an ugly time in our lives. As a side note, I did receive the myFICO upgrade to the 08 model about a month ago.

What shockedme is what when I looked at the alert of the score change, it said that it was from a 100% balance increase on a credit card. I charged $24 on a credit card that had been $0 balance for the past year or so. I just used the card for the one transaction, thinking that I should at least show that I am still alive to that creditor.

I know that when it comes to scores, it is usually best to have one card show a balance and the others be $0, so this really confuses me. This meant that I had one less card showing $0 balance. I do have two other cards with balances. Have you ever heard of a 5 point jump because a card that had been $0 was used for a small transaction? It makes me wonder if maybe something else changed on my credit report?

Appreciate any thoughts - and most importantly, for all the support when I have been through this rebuild!

Re: 5 Point Increase for Balance Increase??

Revelate — Sun, 01 Jun 2014 17:17:31 GMT

Check the older report: see what the last date of activity was on the card.

Secondly, number of balances is a step-function like so many other things: simply adding another balance doesn't necessarily drop your score, but it won't be an increase.

Quite likely either the tradeline was inactive , or something else occurred (anniversaries, AAOA change, etc.): it is very hard to isolate something on a busy report and say yup, that's it!

Possible your aggregate balance likes being at the new number better too. Lot of factors and we're just getting to know FICO 8.

Re: 5 Point Increase for Balance Increase??

EW800 — Sun, 01 Jun 2014 17:23:11 GMT

Thank you Revelate!

Re: 5 Point Increase for Balance Increase??

srchick — Mon, 02 Jun 2014 00:57:55 GMT

Well, let me add my two cents to this thread: I have my WF secured card that I always try to keep at 10% util. Other CC has been a 0 bal for a while. Two weeks ago, I used my Dillards for a purchase and myfico score DROPPED 10 points! SW indicated a "dormant card (8 months since I used it) was showing a balance"! I was VERY upset, paid it in full , and will be waiting to see if I get my score to rebound. I sometimes feel I cannot win! Trying to be responsible, no lates, pay well before due dates, and because I didn't look at the calendar closely enough to beat this one before it reported last month, I get dinged. Oh well... now that I've ranted, carry on srchick.

Re: 5 Point Increase for Balance Increase??

Revelate — Mon, 02 Jun 2014 06:04:52 GMT

Should be fine srchick: don't worry about the vagaries and ups and downs of minor balance changes: focus on the long term and simply put lipstick on the pig when it comes to application time. It's a much happier existance than worrying over every dip in one's FICO score.

Re: 5 Point Increase for Balance Increase??

srchick — Mon, 02 Jun 2014 13:33:08 GMT

I'll keep that in mind, Revelate. Although sometimes it's hard to concentrate on the long term effort, I feel better when I review the "past history", and can see from where I actually began. Just have to keep working on everything so one day soon I can post: "I MADE IT PAST THE 700 CLUB"! (It will happen!)