Are the reasons for an increase/decrease wrong?

[Labtec600]

I put $725 on my credit card and my score went up 26 points.  Reason given is Balance increase 0 to 725.

I paid that off when it came due and my score went back down 26 points. Reason given is Balance decreased $725 - 0.

Huh?? Is this just giving a faulty reasoning? I put the charge on in late Oct. Payments are due 4th of the month, but this skipped November 4th and became due December 4th, which i paid in full. So is the FICO picking up the balance in November and just now reporting it? I know the date the score is pulled can have an affect, so I wonder if this is what it is.

It's just annoying - it went from 759 to 785 back to 759. It's also confusing, I paid off a $27,000 car loan and my score went up 5 points. I bought a $1.75 sprite with my CC and the score went up 10 points!

Do you think next month the score will go back up? I'm starting to house hunt so want my score be nice and high for a loan.

[Anonymous]

This is all part of the credit score game that one must learn to play. From the CRA perspective:

$0 balance = unknown quantity = higher risk (to them) = lower credit score

Their interpretation of the other side of the spectrum is similar:

High balance (utilization) = higher risk = lower credit score

Before shopping for your mortage, pay off the balances of all cards down to $0 except for 1 card.  On this remaining card, leave a very small balance (below 10%).  Your $1.75 can of Sprite example would be perfect.

Try not to obsess too much about the constant dips/spikes of your credit score. Be responsible with your credit and your long-term credit arrow will always point upward.