Re: Credit scoring is a joke. I paid off all credit cards; I want 0 debt ... my scores dropped.
What I'd like to see worked into the algorithm somehow that would sort of eliminate this score drop issue when reporting all $0 balances on revolvers would be to consider the last 2 months of revolver balances. A single point in time snapshot of a $0 balance doesn't tell us if that has been a $0 balance for 1 day or 1 year. If 2 months were considered, it could eliminate this issue in many cases. A balance that is paid off (and reports as $0) wouldn't result in an all zero penality if there was a balance previously, as it would show responsible credit use in paying that balance off. If the paid off balance however remained for the next cycle, that could suggest no revolving credit use at that point and then I see not issue with a penalty being rendered.
I think this extra month of consideration by the algorithm would prevent the commonly imposed scoring penalty for all zero balances in many cases.