I think I did something wrong...

[Jpmack29]

So my chase freedom is a fairly newly acquired account. It is still being added to each credit bureau (Experian/Equifax/Transunion). But, I have been making charges and paying it off after, to keep a low balance as this is habit for me. This morning I got a notification, that a new account was added to my Experian account (Chase) and my experian decreased 5 points. It then proceeded to say 5% utilization to 0%. The statemnet or due date is not until mid June. Why would my score drop? It had a balance, but i paid it in full way ahead of time, just because I can. Did i do someithing wrong? Im alittle confused on this, but I'm sure i will gain the points back in no time. Thanks for any input of what or why It would drop my experian 5 points. Now other bureua reported a decrease from this. 

[jamesdwi]

New accounts penalize your score for the first 5-6 months. as well as a decreased AAoA,   In the past having more availible credit improved your UTL, and having added an addional TL helped but as your reports get better over time your with more TL's, new cards tend to lower your score for six months but your score will recover. 

[Calistal]

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@Jpmack29 wrote:

So my chase freedom is a fairly newly acquired account. It is still being added to each credit bureau (Experian/Equifax/Transunion). But, I have been making charges and paying it off after, to keep a low balance as this is habit for me. This morning I got a notification, that a new account was added to my Experian account (Chase) and my experian decreased 5 points. It then proceeded to say 5% utilization to 0%. The statemnet or due date is not until mid June. Why would my score drop? It had a balance, but i paid it in full way ahead of time, just because I can. Did i do someithing wrong? Im alittle confused on this, but I'm sure i will gain the points back in no time. Thanks for any input of what or why It would drop my experian 5 points. Now other bureua reported a decrease from this. 

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Chase will do a mid-cycle update if you bring your balance down to $0.  That sounds like what happend in this circumstance.

[Anonymous]

No offense but if you worry about 5 point drops or increases on your credit score, you'll drive yourself nuts. And certainly score drops over a temporary utilization report isn't anything to stress over.  It will rebound in no time.  Also you have no idea if the score drop was caused by the reported balance.  It just as well may be caused by a new account reporting.

[Anonymous]

It is worth noting that you want one card reporting a balance at all times. Usually, this just means making sure the statement cuts before you pay in full. However, with Chase's auto-update to 0, that can leave you with no cards reporting a balance, which carries a score hit. However, this is utilization, which has no memory, so if you start reporting a balance again, your score will bounce back. 

[Anonymous]

0% UTIL will lower yours scores. 

[Jpmack29]

Yes, I always keep 1 card reporting below 10% all else zero. But like one mentioned it may be a mid cycle update of which I'm unaware of. But as also mentioned, I am too focused on points- because I am getting near close to 700 across the boards.