Amex high balance increase resulting in huge drop?

[Anonymous]

Hi everyone,

I would like to understand why a high balance on my Amex (about $20K but paid in full on time and representing a $14K increase from the previous month) made my credit score drop by almost 40 points?

I'm really confused because I was under the impression that as long as I repay my Amex balance on time, there won't be any negative effects on my credit score.

Thanks a lot in adcance for your help.

[AllZero]

Insufficient data provided to answer properly to your specific question.

Spike in reported individual and aggregate utilization going over scoring thresholds will give you a score decrease.

[AllZero]

I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?

From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20

[Anonymous]

Thanks a lot for your answers but after reading the other posts, I am still very confused about what happened...

My Amex Platinum being a charge card and me repaying all balances in full, why would my score drop by so much simply because my balance went from $5,000 to $19,000? (and I repaid that in full on time). 

[AllZero]

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@Anonymous wrote:

Thanks a lot for your answers but after reading the other posts, I am still very confused about what happened...

My Amex Platinum being a charge card and me repaying all balances in full, why would my score drop by so much simply because my balance went from $5,000 to $19,000? (and I repaid that in full on time). 

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What was your reported aggregate utilization before and after?

[Anonymous]

3% before and the same after. I only have one other credit card (with BoA) that I keep at 3% and the Amex doesn't impact the utilization rate as it's a charge card so there is no data about this.

The only change is the $14K increase in balance for the Amex that I paid in full...  

[AllZero]

What CMS Credit Monitoring Service are you using? Is it FICO based?

[AllZero]

In addition, are these new accounts that just started reporting? How old are these accounts? Based on your prior post, it appears you have a new and thin credit profile?

[Anonymous]

I am monitoring my CS through the Fico Score option on my Bank of America account

[Anonymous]

Yes the BoA credit card was opened 1.5 years ago and the Amex Platinum in May 2020