FICO dropped with $39 credit!

[bichonmom]

This is very odd. With 3 new CCs reporting, I was afraid my score would drop, but it didn't change a single point.

Then today I got an alert that a) my Walmart balance changed from $150 to $111 (I ret'd an item; haven't made 1st pmt yet.) and b) my score dropped from 663 to 656.

The Walmart card had been previously reported twice: once @ 0 balance when I got in on 11/17. Then on 11/25 it reported increase to $151 balance. With both of those, my score didn't change. Then today's reduction triggered a drop of 7 points!

Between 9/25 and now, it has dropped from 675 to 656, nearly 20 points. I'm kind of freaking out here. Could the score drop be a delayed result of the 3 new CCs and drop in AAoA? I don't understand how the Walmart balance decreasing $39 would drop my score 7 points. That is the *only* change on my CR.

Any ideas?

[RobertEG]

I would look closely for other changes in your CR.  A card going from $0 to $1 could trigger a change in percent of cards with a reported balance, but with that low of a util, it would probably have no negative effect on individual card utils or overall util.  I suspect that something else has changed.......

[bichonmom]

I've checked my report on USAA (which has all 3). No other changes. Plus, I've gotten no other alerts from EQ Score Watch, either.

[pizzadude]

What did your utilization% look like before and after the credit posted on your report ?   The utilization "sweet spot" for some people is 9% reporting on one card, but it varies, other people report better scores at 5% or 3%.

[bichonmom]

Util % didn't change w/the $39 credit. It is and was 14%. If the util affected my score, than it should have changed before, when my util *did* change. Or, it should have changed before, when one or more of my new CCs were reported. Instead it changed when one CC bal went from $150 to $111?! Just doesn't make any sense. I'm wondering if  there is a delay in the FICO score change. Because the *only* change in my report was this reduction in the balance. And I just checked my USAA CR again, and all 3 are right. There is nothing else new showing on any of the CRs.

[CreditAble]

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@bichonmom wrote:

This is very odd. With 3 new CCs reporting, I was afraid my score would drop, but it didn't change a single point.

Then today I got an alert that a) my Walmart balance changed from $150 to $111 (I ret'd an item; haven't made 1st pmt yet.) and b) my score dropped from 663 to 656.

@Anonymous Walmart card had been previously reported twice: once @ 0 balance when I got in on 11/17. Then on 11/25 it reported increase to $151 balance. With both of those, my score didn't change. Then today's reduction triggered a drop of 7 points!

Between 9/25 and now, it has dropped from 675 to 656, nearly 20 points. I'm kind of freaking out here. Could the score drop be a delayed result of the 3 new CCs and drop in AAoA? I don't understand how the Walmart balance decreasing $39 would drop my score 7 points. That is the *only* change on my CR.

Any ideas?

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It is a fact that Fico can actually go down when a balance approaching $0 is obtained. In many cases "$0" reporting will generate a few points lower than  a slightly higher balance would have.

A lower balance does not always generate a higher score. If I were you I would not worry about it. Just use your actual data points to plan your strategy for the future. In months that you want to allow a balance to report on your Walmart card, prepay the card down to $150 before the statement drop.

In other words, either allow a balance of $0 or $150 to report on statement drop for your Walmart card. Trial and error will enable you to determine the appropriate "optimal" reporting balances for your other cards. Of course there are possibly other factors that are in play, but it seems that you have discovered the optimum reporting balance for your Walmart card.     

More info can be found by clicking on the following thread.

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Playing-with-reporting-balances-to-find-the-FICO-sweet-spot/m-p/577108/highlight/true#M41399

Even more info can be found by typing "sweet spot"

in the "Board" Search field at the top of this page.

It will be less confusing it you don't use the drop down menu options.

Simply enter "sweet spot" (include the quotation marks).

Make sure that "Board" is selected then click "Search".  

Read through the posts to find the posts that pertain to your issue.

Warning: Digging too deeply into this issue can fry your brain.

[bichonmom]

My balance didn't go down to 0. It went from $150 to $111. And my util% did not change at all. It was 14% last week and it's still 14% as of today. So the $39 credit did not affect my util% at all.

1 inq & 3 new CCs (for 7 total) did not change my FICO at all. But one CC going from $150 to $111 caused it to drop 7 points.

[Jazzzy]

Are you saying that you got a Scorewatch alert saying your score had changed?

MyFico only checks for changes every so often. There is no way you can blame the drop on a slight balance decrease. If you have been adding cards, you have been lowering your AAoA. You have new accounts...that can ding you.

Trying to find a reason for every change will make you crazy. It doesn't work that simply.

[bichonmom]

Yes, I got a SW alert with 4 items:

This e-mail is to notify you that the following changes have occurred on your credit file:

The target credit score you configured for notification has been passed or reached.

Your credit score changed and as a result you may qualify for a different loan rate.

an account balance decreased by a specified amount

an account balance decreased by a specified percentage

The week before, when all of the CCs were on my CR, I pulled my EQ FICO and it was 663. Hadn't changed at all from before the new CCs reporting.

Then I rec'd the email, and the only change to my CR was the $39 cr on Walmart acct.

[MarineVietVet]

I agree with Lynette. Score changes are normal and often a clear explanation as to why is elusive. I would not be too concerned with this.

(Of course it's not my score so it's easy for me to say not to worry  )

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".