topic Re: Crazy?... in Understanding FICO® Scoring

Crazy?...

Anonymous — Tue, 08 Sep 2015 15:48:11 GMT

I just paid off my American Express card. The balance was $ 1001.00. It is now 0. I received an ALERT from Experian, saying just that: My balance dropped from $ 1001.00 to ZERO, and, they dropped my credit score by 3 points!!!!!!

Wait what? Lol. I don't get it. Can anyone here please explain why paying off my balance of over $ 1000.00 to 0 has Experian drop my FICO score? Thanks.

Re: Crazy?...

TheConductor — Tue, 08 Sep 2015 18:09:44 GMT

High utilization of your total available credit is bad for your score, but so is zero utilization. For the optimal score, you want to let a small balance report.

If paying off that Amex left all of your accounts at zero balance on your report, that is the likely reason for the small score drop.

Re: Crazy?...

RobertEG — Tue, 08 Sep 2015 20:07:24 GMT

Is the account open or closed?

Re: Crazy?...

Anonymous — Wed, 09 Sep 2015 23:03:18 GMT

Its open.

Re: Crazy?...

Anonymous — Wed, 09 Sep 2015 23:04:45 GMT

Ok, thanks. Tomorrow I am going to buy something....anything...on my American Express Card....lol....seriously....25.00 here I come!