10 Point DROP After paying off Citibank

[SouthJamaica]

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@Anonymous wrote:

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@NRB525 wrote:

FICO 8 penalizes scores when all revolving accounts are zero. The points penalty is profile specific. It is just a fact. 

Why ask why? 

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Is it profile specific?  I have not heard of someone not incurring an AZ penalty on revolving accounts. 

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I also balked at that sentence. But then I figured out that he means the number of points is profile specific.

[Anonymous]

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@SouthJamaica wrote:

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Not in my case. In my case it exceeded 30 points. 30 points was my attempt to provide an average.

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But the majority of your points came once you dropped to 8.9%, meaning that for the other 90%+ of the paydown you would not have been penalized ~30 points had you paid off the loan.   Or, that you weren't experiencing the majority of the loan [points] benefit for most of the time.  I get it that it's a glass half full glass half empty argument, I suppose I just see it opposite of the way you do. 

[Anonymous]

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@SouthJamaica wrote:

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If you're satisfied with the explanations given in the AMA thread, fine. To my mind they make no sense whatsoever.

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I'm not speaking about the thread at all (I'd personally grade it a "D" in terms of being informative), simply the one point made regarding the topic at hand regarding risk and the AZ penalties.  If that was what was found with their research regarding risk assessment on that subject I'm good with it, as no doubt they invested far more than we have. 

[NRB525]

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@SouthJamaica wrote:

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@Anonymous wrote:

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@NRB525 wrote:

FICO 8 penalizes scores when all revolving accounts are zero. The points penalty is profile specific. It is just a fact. 

Why ask why? 

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Is it profile specific?  I have not heard of someone not incurring an AZ penalty on revolving accounts. 

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I also balked at that sentence. But then I figured out that he means the number of points is profile specific.

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"The points penalty is profile specific." Meaning every profile loses points at All Zero, but different amounts of points. 

[Goodfella]

Just received an Experian alert that my FICO dropped 25 points...25 points! No changes in my credit report except 2 months of zero balance on my credit cards. What a racket! No good deed goes unpunished. 

[Anonymous]

Posts 2-4 in this thread explain it very well. It may not be the most logical thing but it is well-known and -recognized, and easily avoided.

[Anonymous]

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@Goodfella wrote:

Just received an Experian alert that my FICO dropped 25 points...25 points! No changes in my credit report except 2 months of zero balance on my credit cards. What a racket! No good deed goes unpunished. 

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If you've been at $0 balances on all of your revolvers for 2 months, any AZ penalty should have been realized at least a month ago, not now.  I'd verify that information and double check for something else that may have caused the score drop.