I'm amazed... Utilization and score drops

[Drsgwld]

Ok, so I use a credit card and carry less than a 20% balance and I have a 10 pt drop on Equifako score. I'm also frustrated that they are NOT updating payments each month on other accounts such as student loan, even though I'm paying more than the payment amount timely. It doesn't show negative, but it certainly hasn't shown the new balance either. Grrr

[pizzadude]

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@Drsgwld wrote:
Ok, so I use a credit card and carry less than a 20% balance and I have a 10 pt drop on Equifako score. I'm also frustrated that they are NOT updating payments each month on other accounts such as student loan, even though I'm paying more than the payment amount timely. It doesn't show negative, but it certainly hasn't shown the new balance either. Grrr

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I'd try not to worry about your score, unless you're going to be applying for credit in the near future.   Also it sounds like you are looking at the "Equifax Credit Score" which is a FAKO sold by EQ, and it can't be correlated to a FICO score.

[Drsgwld]

Isn't FICO Score Watch powered by Equifax, who obviously finds it necessary to negatively alter my score when I have an excellent payment history. Soooo frustrating.

[pizzadude]

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@Drsgwld wrote:
Isn't FICO Score Watch powered by Equifax, who obviously finds it necessary to negatively alter my score when I have an excellent payment history. Soooo frustrating.

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Ok I assumed you were looking at the EQ website based on your earlier comment.    ScoreWatch sold here at MyFICO is indeed based on a FICO score from EQ.

A 10 point swing could be due to CC utilization, or other changes...

[Anonymous]

Hello!

Utilization is a very tricking thing. You would think having a $0 balance or low utilization on a credit card would be a good thing but sometimes it's not. I always use the simulator to tell me what utilization range is good and won't have a negative impact on my score.

I agree with the other commenter. The EQ score is not a true FICO score and you shouldn't focus so much on the score, but on the information that is on your credit report. 

[Anonymous]

Please remember that your payment history is not the only factor that influences your FICO score. Utilization, new credit, and length of credit history also are important too. 

Good luck!

[Drsgwld]

Thank you. Utilization on all my CR says Good. My payment history says excellent. My length of credit fair. My history poor (Only 5 yrs post divorce) plus I have my exhusband's chapter 7=lifetime 😖 bankruptcy from HIS business on there; which is 6 yrs old.

[Drsgwld]

Yes, it was the Equifax credit score. I'm afraid this 10pt swing for using a credit card with 0 balance to a 18% will knock my FICO down.

[Anonymous]

It's a good chance that the utilization of that cc could have made your score drop. FICO scores fluctuate daily based on our usage and when our creditors report information to the credit bureaus. I'm sure that once you pay the cc your utilization will increase 10 points as long as all other data remains the same.

Again, I would focus more on the data and not the score unless you need it.   

[Drsgwld]

My FICO actually increase 10pt. I had a collection enter my Equifax from 09 that popped up today from yesterday. Maybe that is it? It appears to be a bill that my ex husband never covered for one of our children or himself. I am disputing and refuse to pay another one of his bills! I've already contacted CP bureau. I've paid this company other bills because I thought I had to. I recently disputed a 0 balance on my Experian because it was paid and wasn't mine. I think it's a retaliation. They can't get him to pay so they once again are coming after me. They had my address, phone# to verify this debt. Enough! I'm fighting back!