Credit Score

[Anonymous]

1- why does my credit score go up and down every month even when there are no changes in my credit report?

2- The credit balance on one of my credit cards increased by $200, my credit score dropped by 16 points. Why is that?

[thornback]

Hi Ricardo, welcome to the forums!

1. From where are you getting your scores?

2. Changes in utilization (card balances) can affect your scores but we cannot determine exactly why you had such a drop without a complete picture: we need your credit limit for this card with the $200 balance, as well as the limits & balances for any other cards you have.

Also, even if not obvious, your credit is always changing. Creditors update your accounts every month, items age, inquiries fall off, etc., and all of these changes can impact your scores.

[Shooting-For-800]

Scores vary monthly. 

Each Fico has different formulas.

The older and more consistant your file is, the more consistant your score will be.

Just do what is financially sound and you will be fine.

One mistake people make is letting a $0 balance report on all cards.

Let at least one report a balance of at least $25-50.

[HeavenOhio]

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@Shooting-For-800 wrote:

Let at least one report a balance of at least $25-50.

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For an optimal score, I'd suggest at least $5 but not much more. The reason for the $5 minimum is that most banks will excuse small balances rather than bothering to bill you. It may be $1 at Bank A and $3 at Bank B. $5 should leave you in the clear.

The reason for not going much more than $5 is to eliminate any possible cause of a scoring ding. Of course, as you say, "Just do what is financially sound and you will be fine." There's usually no need to go for a single tiny balance. It's something you keep in your back pocket for times where you need every possible point.