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Point drop?

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Established Member

Point drop?

How does paying off $144 and decreasing my Fingerhut balance to $0 decrease my Equifax score by 1 pt.? I thought paying down balances help to increase score.

Message 1 of 7
6 REPLIES 6
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Regular Contributor

Re: Point drop?

Hard to answer without more info. Fico or Fako score? Is this your only trade line reporting? If not, did you at least leave one line with a small balance? By any chance was FH in the fresh start program? If so you will have more bad news coming.
Message 2 of 7
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Established Member

Re: Point drop?

Fingerhut is the only trade line, and yes I did start with the fresh start program a while back. They just increased my available credit a couple of days ago. Bad News???

Message 3 of 7
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Established Member

Re: Point drop?

Yes, it was my FICO score that dropped. CK increased by 11 points...lol

 

Message 4 of 7
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Regular Contributor

Re: Point drop?

Ok, getting somewhere now. Part of the scoring matrix is utilization percentage where 1-9% is best, 10-33% still good but a slight ding, etc. Zero reporting is a bigger zinger but only for that month as it's basically insinuating that you were inactive. Leave a little reporting each time, even if it's only $1.

The fresh start is a whole different animal. Since you have received a cli from WebBank I will assume you fulfilled the terms of the agreement and now have their fully unsecured card. If so, all is good. If not you will fall into the self made trap a friend of my wife made. She had fresh start and pif'd after two months to save on interest. I tried to explain she was messing up... she of course didn't listen. She ended up with product she grossly overpaid for, received a $100 increase to her fresh start that she is still in, and must now pay the $30 deposit on another purchase and do it all again.
Message 5 of 7
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Established Member

Re: Point drop?

Thank you for that explaination. I now better understand. Unfortunately, I haven't gotten a physical Fingerhut card yet. All the credit they have extended has been without a card. I presume I'm still in the Fresh Start program. I started with $250 credit, now at $1250. Should I ask for their card??

Message 6 of 7
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Regular Contributor

Re: Point drop?

I personally prefer to have cards on hand, if for no other reason just to make sure it came to me if it was actually sent. No harm in giving them a ring about the card and also to inquire on your actual status.
Message 7 of 7
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