Score dropped 5 points after $97 balance

[Anonymous]

All:

My Exp score had been 678 and TU was 679.  I have an Amex that hovers around $1000-$1500 each month (always paid off ontime) and a Visa with a $500 limit.  The Visa had been at a zero balance for about 6 months (I'd usually charge $10-30 a month and pay it off immediately). 

I've had the card for a few years.  I also have a car loan which I am paid months in advance.

This month I have a $97 balance on my Visa after making more than the minimum payment and my Exp dropped 5 points (to 673).  Does that seem unusual for a small balance that is ontime?  How long will it take to get those points back by getting my balance back to Zero?

I've worked hard to get it that high after a bankruptcy five years ago, so  I am **bleep** about every point.  Finally, do you think it worth my while to open another Visa?  Will that help increase my credit?  I'm hoping to take out a new car loan within the next year.

Thanks for any help,

CR

Message Edited by cdrphd on 09-24-2009 12:33 PM

[MarineVietVet]

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@Anonymous wrote:

All:

My Exp score had been 678 and TU was 679.  I have an Amex that hovers around $1000-$1500 each month (always paid off ontime) and a Visa with a $500 limit.  The Visa had been at a zero balance for about 6 months (I'd usually charge $10-30 a month and pay it off immediately). 

I've had the card for a few years.  I also have a car loan which I am paid months in advance.

This month I have a $97 balance on my Visa after making more than the minimum payment and my Exp dropped 5 points (to 673).  Does that seem unusual for a small balance that is ontime?  How long will it take to get those points back by getting my balance back to Zero?

I've worked hard to get it that high after a bankruptcy five years ago, so  I am **bleep** about every point.  Finally, do you think it worth my while to open another Visa?  Will that help increase my credit?  I'm hoping to take out a new car loan within the next year.

Thanks for any help,

CR

Message Edited by cdrphd on 09-24-2009 12:33 PM

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Welcome to the forums.

One thing I will ask is where did you get those scores? When you say "Exp" do you mean Experian or Equifax? I ask because no one has been able to pull their own Experian score since mid-February. Creditors can pull Experian and also there is a CU in Pennsylvania that supplies that information to it's members only. You can only buy true FICO scores at a few places. One place is here at myfico. I suggest you do an internet search for "myfico discount codes" to save a little money. Also until the end of September you can buy any myfico product for 25% off by using the code FinancialHelp25 at checkout. You can also purchase your Equifax score at www.equifax.com and your Transunion score at www.transunioncs.com. 

Do you pay your Amex bill before your statement posts each month? If you do this every month a lower balance will be reported to the CRA's. This will help your score because it will lower the utilization on the card.

You can gets lots of good advice and information here. Good luck to you.

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

[Anonymous]

My bad, I did mean Equifax.  No, I pay the Amex after it posts but on-time.  I've been trying to lay off of that one but been using it because I have to pay it off, so I don't accumulate debt. 

One mor ething -- is it better to open a new card or request a higher limit on the one I have to make the debt ratio smaller?

[Anonymous]

What is your credit mix like?  How many CC do you have?

[Anonymous]

Again, two cards:

Visa with $500 limit and Amex.  The credit dropped when I left a $97 bakance on the Visa

[MarineVietVet]

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@Anonymous wrote:

My bad, I did mean Equifax.  No, I pay the Amex after it posts but on-time.  I've been trying to lay off of that one but been using it because I have to pay it off, so I don't accumulate debt. 

One mor ething -- is it better to open a new card or request a higher limit on the one I have to make the debt ratio smaller?

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In my opinion if you start to pay the Amex before it posts you will help your score.

I would try a CLI request before applying for new credit. You might get away with just a soft pull that way. No reason to have a hard inquiry on your reports if you can avoid it.

How old are these accounts? Sometimes just letting accounts age naturally is the best action.

All this is just my 2 cents.

[Lel]

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cdrphd wrote:

All:

My Exp score had been 678 and TU was 679.  I have an Amex that hovers around $1000-$1500 each month (always paid off ontime) and a Visa with a $500 limit.  The Visa had been at a zero balance for about 6 months (I'd usually charge $10-30 a month and pay it off immediately). 

I've had the card for a few years.  I also have a car loan which I am paid months in advance.

This month I have a $97 balance on my Visa after making more than the minimum payment and my Exp dropped 5 points (to 673).  Does that seem unusual for a small balance that is ontime?  How long will it take to get those points back by getting my balance back to Zero?

I've worked hard to get it that high after a bankruptcy five years ago, so  I am **bleep** about every point.  Finally, do you think it worth my while to open another Visa?  Will that help increase my credit?  I'm hoping to take out a new car loan within the next year.

Thanks for any help,

CR

Message Edited by cdrphd on 09-24-2009 12:33 PM

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So if I understand correctly, your Visa card has been reporting a zero balance for the past six months, and this month you let a $97 balance report.  Is this correct?

If this is the case, then the apparent resurrection of a previously-idle credit card, plus the fact that now all (read: both) of your cards are reporting balances instead of just half (i.e. one), is what is probably affecting your score.  Others - myself included - have noticed score drops when sock-drawered cards have new activity.  Also, it's generally recommended that you only let no more than half of your tradelines report balances, that way it doesn't appear that you are in need of increased credit use.  Since you just have those two cards, you have no leeway.

If you go back to paying your balance in full before your statement posts, then you should recover those points.

Utilization is another factor that could be at play here, but since you didn't mention the limit on your Amex, this is only speculation.