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I cant believe what this did to my credit score!!!!

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Valued Member

I cant believe what this did to my credit score!!!!

 

 

I am in shock!! In April my TU score was at 746 after working at it for over a year and bringing it up from 550. I started this year as a debt free AQmerican and just because my BOA credit card has a balance of $850.00 out of a thousand my FICO has dropped to 701!!!! With no other lines occupied. So  tomorow I will pay off the card, have no balance reporting and start to rebuild my credit again.

 

My question is this, if I can maintain a minimum or zero balance for the rest of the year, is it possible to get back up to 750 by year end?

 

Thanks everyone,

 

Regards,

 

P.Od

Message 1 of 6
5 REPLIES 5
Epic Contributor

Re: I cant believe what this did to my credit score!!!!

Sorry that happened.  But, utilization is a huge factor in the calculation of FICO.

 

Is that the only card you have or the only one you use?

 

You don't want a 0 balance to report on all your CC.

 

For optimum scoring keep the balance at 10% or below.  Pay in full before the statement posts.

 

I think you should get your score back fairly quickly as soon as utilization is below 10%.

Message 2 of 6
Regular Contributor

Re: I cant believe what this did to my credit score!!!!

Congratulations on being debt-free!

 

According to my understanding of how it works, if you have score X, then your utilization drops your score to Y, and nothing else changes, if you pay off your accounts, returning your utilization to its original level, your score should revert back to approximately X.

 

 

-----
04/2010 EQ 656 TU 648
05/2010 EQ 669 TU 664
06/2010 EQ 674 TU 678
07/2010 EQ 666 TU 667
Message 3 of 6
Valued Member

Re: I cant believe what this did to my credit score!!!!

Thanks for your advice, curious, why wouldnt I want a zero balance on my cc? What I have done in the past is within a week or two after using my cc I pay in full. I have two other ccs.

Message 4 of 6
Valued Member

Re: I cant believe what this did to my credit score!!!!

Thank you, I feel relieved, I can now extinguish all 13 ciggerates and resume my drink

 

Cheers

Message 5 of 6
Epic Contributor

Re: I cant believe what this did to my credit score!!!!


@USSVOYAGER wrote:

Thanks for your advice, curious, why wouldnt I want a zero balance on my cc? What I have done in the past is within a week or two after using my cc I pay in full. I have two other ccs.


FICO does not like to see 0 balances on all your CCs.

Message 6 of 6
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