I recently made a $40 purchase on a credit card and paid the bill when it came in. When the charge registered with FICO, however, it dropped my score by 30 points! I contacted customer service, but they just gave me a speech about the formula and charges not registering for 30 days, etc. The response was concluded with a somewhat condescending reminder to "pay my bills on time". As my record reflects, I am very punctual when it comes to paying bills. Is it normal to see such a steep drop after making such a small purchase? I charge more than that when I use my cards typically, so I don't understand how $40 has taken me from a good credit score to a dismal score.
How many of your credit cards are reporting balances above $0?
2 of 4, but I'm not even close to being maxed out.
I don't think its the actual number, but the percentage. There are other people who have experienced similar drops when 50% of cards were reporting balances, regardless of the actual utilization.
Util factors in, they want to see how you handle the credit. When your scores get to a certain point, it really doesn't matter.
So FICO is not company we could trust? Because if your paid your doubt to try save money after take all your credit down to zero is bad , why? We have to still buying just for good credit?
fico is one of few we can actually trust