Credit Score Drops

[Anonymous]

I paid off my car last week. My credit score was 713 and dropped to 690 yesterday. I have paid my bills on time for the past 15 months. I have one credit card with zero balance and a mortgage loan. No other debt. Please let me know how I can increase my credit score. I want to achieve a score of 750 or better.

[Anonymous]

I would imagine the drop was due to the car payment disappearing. Your credit card will not help your score if it doesn't look like you are using it so let your statement close with even just $10, pay it off the day after your statement generates if that makes your feel better. Maybe get another card that fits your spending and only let one of them report that $10 every month. And then just give it time, you'll see your score climb month by month as your statements post with on time payments and low utilization (but existing utilization). For all the CAs know you haven't even used the card if it reports $0 balance every month.

[Anonymous]

I use my credit card all the time, I pay off the balance before the bill is due.

[Anonymous]

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@Anonymous wrote:

I use my credit card all the time, I pay off the balance before the bill is due.

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Exactly, so as for as the credit agencies are concerned that means your not using it, it needs to report a balance however big or small for them to safely assume you are using and paying your card off every month, they can't see your purchases, only the credit card issuer can, the agencies only see the statements reported balances, so $0 statement looks like no use.

Edit: to be clear I am not saying pay interest, simply let your statement close with $10 and then pay it off immediately after your statement generates every month within the grace period, no interest and your building your scores with "responsible" use. Even though I agree I wish paying off before the statement counted because that is very responsible use.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

I use my credit card all the time, I pay off the balance before the bill is due.

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Exactly, so as for as the credit agencies are concerned that means your not using it, it needs to report a balance however big or small for them to safely assume you are using and paying your card off every month, they can't see your purchases, only the credit card issuer can, the agencies only see the statements reported balances, so $0 statement looks like no use.

Edit: to be clear I am not saying pay interest, simply let your statement close with $10 and then pay it off immediately after your statement generates every month within the grace period, no interest and your building your scores with "responsible" use. Even though I agree I wish paying off before the statement counted because that is very responsible use.

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So what happens when all my cards report $0?

I know AZEO would be best if you want to app for something but does it really matter if you don't have any upcoming apps? 

[Anonymous]

Ah, I see. That makes sense. Ok, I will do that for the next few months and see what happens.

[gdale6]

Welcome to the board. Obtaining 2 more revolving cards should boost Fico, 3 is the minimum if trying to drive it higher.

[Anonymous]

More cards may make it go faster but I got my score to 755 with just my first one by itself, no other cards or loans present so ymmv.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

I use my credit card all the time, I pay off the balance before the bill is due.

---

Exactly, so as for as the credit agencies are concerned that means your not using it, it needs to report a balance however big or small for them to safely assume you are using and paying your card off every month, they can't see your purchases, only the credit card issuer can, the agencies only see the statements reported balances, so $0 statement looks like no use.

Edit: to be clear I am not saying pay interest, simply let your statement close with $10 and then pay it off immediately after your statement generates every month within the grace period, no interest and your building your scores with "responsible" use. Even though I agree I wish paying off before the statement counted because that is very responsible use.

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So what happens when all my cards report $0?

I know AZEO would be best if you want to app for something but does it really matter if you don't have any upcoming apps? 

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Sorry for the delay! Busy with work and missed your reply. I'm pretty sure that 0% util just comes across as "inactive" if thats how you'd like to put it. I don't imagine it would really hurt you but it definitely won't help your score grow as your not showing responsible USE of your credit. Key word there is they want to see you using and paying off your credit in order to increase your score and show your less risky of a borrower as time goes on. Hope that helps!

[Anonymous]

Good advice here. As other posters have said, you need one card reporting use. It took me awhile to find my footing, too, when I was rebuilding. Best of luck to you!