Last week I was notified all three of my credit scores went up 18 points.
I am at 748-742-749
All 3 climbed.
I went in to find why, and all 3 said the same thing...
"There was no change on your credit report. We know this could be frustrating, but there is no further info. Available."
I wake up this morning (four days later )
Only to find my FICO 8 score, DROPPED!
What's even more odd, it dropped the exact same amount the increase showed on all three of my accounts!
I would think, taking that into consideration, the score would of went UP.
If FICO 8 uses all 3 bureaus to reach a decision, and all 3 bureaus increased by the exact same amount, how could the score drop?
Nothing changes except I paid my only credit card with a balance off.
It wasn't even a big amount (47 stinking dollars )
FICO 8 penalizes you for having all cards reporting zero balance.
If you let one card report a small balance, and then pay it off after the reporting date, your 18 points will come right back.
@mg5051, it's what SJ said. When your scores dropped, it put you in exactly the same position as you were before the increase. Because nothing else would have changed (such as AAoA — average age of accounts), your scores moved to exactly where they were previously.
18 points fits right in with commonly reported score drops for "all cards at zero." I got hit much harder for the all cards at zero penalty a couple of months ago. My FICO 8s dropped by 32 points (EQ), 37 points (TU), and 25 points (EX). My other scores were affected by varying amounts. On the low end, my Equifax 04 (FICO 5) Classic score dropped by only 4 points. On the high end, my Transunion FICO 8 Auto score dropped by 48 points.
In almost all cases, my scores bounced back to exactly where they were when a positive balance reported a couple of days later. A few of the TU scores were "muddied" because there was an AAoA increase during that timespan. They ended up a bit higher than my starting point.
Thank you so much for responding.
So my score dropped 18 points?
I mean, I grasp the concept of what you're saying, however 18 points????
Here is where I am perplexed....
The score dropped the same amount that the other 3 increased.
Seems like an odd coincidence.
I sincerely am curious if it's in error?
No it often works that way in FICOland.
I just spoke to fico and they said absolutely why the score dropped. I said 18 points??? She said yes. It makes perfect sense. So I have to start using around 7 percent of my available credit. She said that's a comfortable place to stay. She said your score will go right back up. Vantage increases you for small to no balance. Fico doesn't increase you for zero balance. You're punished for it. They think you're in financial turmoil for no usage or you can't handle debt. Wow I learned a valuable lesson here today.
Thank you so much for your help
It has nothing to do with how much of your credit you use. If you use 7% or 1% or 1000%. What matters is the reported balances. And you just need to have 1 of the accounts report a small balance in order to avoid the FICO 8 penalty for all zero balances.