@Efour wrote:My credit score just dropped from 623 to 617 after my balance on my credit card went from $60.00 to $0.00 reported. Why would this be the case?
which score is this? Is it your FICO or FACO?
Also, it is possible that if all credit cards report a $0 balance, that shows no usage of credit at all and may be a negative thing. Do you have any other cards that may be reporting a small balance? Ideal FICO score seems to be allowing one card to report between 1-9% while all others reporting $0 balance. But at least ONE has to report a small balance.
@Efour wrote:My credit score just dropped from 623 to 617 after my balance on my credit card went from $60.00 to $0.00 reported. Why would this be the case?
If thats a Fico and you have no revolving balances reporting at all it gets scored at the 30% util level, leave a few dollars on 1 card to report to the CRAs.
For best FICO score results you should have 2 of the 3 report 0 balances and the 3rd report 9% or less. Keep in mind though that utiliziation isn't something that FICO remembers and so if you aren't planning on apping for anything right now you can have your cards report with different %s.
@steppy wrote:I thought you were supposed to have a balance of under 9% on each card. I only have three cards and they are all very new. Should I be leaving 0 balance on 2 of them.
No, No, its balance on 1 card of 9% or below, if you let all cards report a a balance even if its only a buck you would be dinged by Fico pretty good as that is also a scoring metric in which you will lose points for each additional card that reports a balance.