This is yet another frustrating set back on my quest towards improved credit. I started this process two years ago with a score of 520 and successfully acheived the 700's a few months ago. I opened a Target card to re-establish credit (it's the only card I have) and pay it off every. single. month. However for the last few months, I've been receiving and update from myfico saying that my score has continued to drop -4 points due to the fact that I am carrying a balance on a credit card. Again, not true when I pay off the card to zero every month on time, no exceptions. Now my score is down to 678. I've never been late with a payment and this is the only credit card I have opened at this time.
Any ideas why this is happening and what I can do about it?
Thanks in advance.
Are you paying the balance BEFORE the statement cuts or when you receive your monthly statement?
If the later then the balance is reported to the CRA - even if you instantly pay it. If that "statement balance" goes up the next month it looks like you are increasing your debt.