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1 Point Drop but all things are the same month to month. What happened?

Anonymous
Not applicable

1 Point Drop but all things are the same month to month. What happened?

Hi There:

 

To all happy and safe holiday season.

 

Question please even though it is 1 point but I still like to learn all I can about credit.

 

I checked my Credit Scores today and FICO remained the same (went up 6 points in September and no change after), Equifax and Experian which went up one point the start of November went down 1 point each today.

 

Here is why I am puzzeled even if it is 1 point. I never use more than 2 percent of credit per month, pay every bill in full each month, and have not been even one second late for a payment in at least seven years.

 

In the eyes of a Credit Bureau, if you are consistant in the approach, and are paying on time, using little credit (Isn't 9 percent or under considered proper?), and have zero balances, why would the score drop?

 

Thank you for your time and be well and safe,

1 REPLY 1
SouthJamaica
Mega Contributor

Re: 1 Point Drop but all things are the same month to month. What happened?


@Anonymous wrote:

Hi There:

 

To all happy and safe holiday season.

 

Question please even though it is 1 point but I still like to learn all I can about credit.

 

I checked my Credit Scores today and FICO remained the same (went up 6 points in September and no change after), Equifax and Experian which went up one point the start of November went down 1 point each today.

 

Here is why I am puzzeled even if it is 1 point. I never use more than 2 percent of credit per month, pay every bill in full each month, and have not been even one second late for a payment in at least seven years.

 

In the eyes of a Credit Bureau, if you are consistant in the approach, and are paying on time, using little credit (Isn't 9 percent or under considered proper?), and have zero balances, why would the score drop?

 

Thank you for your time and be well and safe,


1.  One point is not a significant change.

2.  There is no evaluation "in the eyes of a Credit Bureau". A FICO score is the application of an algorithm to the data reported in the credit bureau's database as of the moment the score is pulled.

3.  Your "consistency in approach" is not part of any algorithm; the FICO score is a snapshot of your credit record taken at a moment in time.

4.  "Paying in full every month" is not a complete description. Some people pay before the balance is reported, some pay afterwards, some pay partly afterwards and partly before. Each can result in different "utilization" numbers, and different scores.

5.  There is no "proper" aggregate revolving utilization. 9% is good, but 6% is better, and 3% is even better.

6.  Zero balances are indeed a good thing, unless you have all zero balances, in which case your score would be reduced by the "all zero" penalty.

 


Total revolving limits 748700 (628200 reporting) FICO 8: EQ 697 TU 704 EX 685

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