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Decreased score

New Member

Decreased score

My utilization on one of my cards dropped to zero, yet my score dropped as well. Why?
Message 1 of 5
Frequent Contributor

Re: Decreased score



I just had the same thing happen to me.

It happens to all of us from time to time.


A 0 balance on all of your revolving accounts

gives FICO the impression that you're not using

your cards. This is why so many forum members

recommend keeping a small balance on at least one

of your cards. And if you create the impression with

FICO that you're not using your cards, then they assume

you're a short term risk so your scores drop. But the moment

your card reports a balance, you should recover some if not

all of those points. So try leaving no more than a 9% balance.

This is called the AZEO method - All Zeroes Except One.


I know. It's counterintuitive, right? You'd think FICO would

want us to report 0 balances on all of our accounts to prove

that we're responsible. But their algorithms are mathematical.

They lack the common sense of humans. So each month,

you will have to weigh whether or not you want to leave a balance

on one of your cards and see your scores rise, or just pay them off

to 0 and take a short term hit. We all face this predicament, so

you're not alone.

Message 2 of 5
New Member

Re: Decreased score

That's makes some sense... what a peculiar system!! Thank you for the simple explanation. Frustrating indeed..
Message 3 of 5
Frequent Contributor

Re: Decreased score



My pleasure. And you're right: "peculiar" is the right word.

Just think of it this way: if you give FICO what they want,

they'll give you what you want - the highest scores possible.

Message 4 of 5
Established Contributor

Re: Decreased score

To go a little deeper in this explanation...

My DW has 4 cc’s. We have utilized the AZEO Method(you can search it on here) and use this website( to determine EXACTLY how it will show if you input the data. VERY USEFUL!!
We did that for 2 months to see exactly how many points DW would gain/lose if the AZEO was implemented. DW lost 20 pts by reporting 35% on one card(we were testing the point lose/gain) as soon as next month rolled around DW reported 3% on one card(others reporting $0.) DW gained 29 pts. Going from 636 to 665. BIG DIFFERENCE, IMHO. So, is absolutely ridiculous the point loss/gain for being responsible, ugh!

Good Luck! Keep utilization low under 8.9% AZEO and DON’T carry a balance. Just let it report and then PIF before due date and you’ll stay in great shape.

Starting FICO 8 Score: EQ 491
Stating FICO 8 Scores 03/17/2018
TU 483 EX 527 EQ 491
Current FICO 8 Score:
EQ 578
Goal Score: 600(within a year)

Take the myFICO Fitness Challenge

Message 5 of 5