FICO score decreased?!!?

[Anonymous]

First of all I am fairly new here. I usually just read the posts and don’t really reply or say anything. I have to now. It’s kind of a vent and I’m sure there is a reason that you guys will tell me.

Very brief story about me credit score had dipped into the 400’s back in 2016 when I lost my job and my fiancé left me. I had no choice but to default on credit cards. Fast forward three years later I have finally got my score hovering around 640. Depending on the bureau.

Now the venting. I paid off my credit cards to keep my utilization down to nothing. I got my alerts on here that my balances decreased and my score was updated. I log into look and my Equifax dropped 15 points, my Experian dropped 20 points and my TU went up 1 point. I don’t understand this. These bureaus are corrupt and crooked. The system is rigged. You should be commended for paying off your debt not penalized. Why did my scores drop significantly on two and went up on one? I have spent a lot of time and money to get these scores up to where they were only to see them drop for doing something good. It’s hard to get them up to “good” level. I would love to get a credit card that gives me good rewards and a better SL then 1k. But if things like this happen, what is the point?

Rant over. Thank you.

[thornback]

---

@Anonymous wrote:
I paid off my credit cards to keep my utilization down to nothing. I got my alerts on here that my balances decreased and my score was updated. I log into look and my Equifax dropped 15 points, my Experian dropped 20 points and my TU went up 1 point. 

---

This is why your score dropped.  You are being penalized for having 'no revolving credit usage'.   You never want to report 0% util - always allow at least one card report a balance - and make sure it's a revolver, not a charge card.  FICO likes to see some debt - just not too much debt.  The good news is that util has no memory.  So, charge something small on one of your cards and allow that balance to report and you'll regain your lost FICO points - $5=$10 is enough to maintain super low util and your scores. 

---

@Anonymous wrote:
These bureaus are corrupt and crooked. The system is rigged. 

---

The drama.  Nothing is rigged.  You just have to learn and understand the scoring system.  Just because you don't understand something, doesn't mean it's corrupt. 

---

@Anonymous wrote:
Why did my scores drop significantly on two and went up on one? 

---

There could be various reasons for this -- we cannot offer possible causes without additional information. One Q:  Does the info on TU match the info on EX & EQ exactly?  

Good Job on rehabbing your credit after your life changes -- we all know how difficult it can be. 

[GApeachy]

---

@Anonymous 

---

You vented; got it out....totally understandable.  Do like above ^^^^poster recommended and put a little charge on a revolver, your revolver.  Look to see which card reports next if it's not too soon to make sure it is counted on your stmt. and charge a little something on it so it will report that small balance.  It's all about debt and the balancing act you perform that gets the score.  Is she/he a 10 or a 2, that type of thing.  You're showing you can HAVE debt and HANDLE debt.  So you gotta give them something to work with...debt management is in the spot light.

[Girlzilla88]

Another note is see if you can set up dates that make your cards work for you for example I have 3 cards one that reports early in the month, one the middle, one the end so I can rotate them and pay them accordingly to help my CS and still take advantage when I need to       

[SouthJamaica]

---

@Anonymous wrote:
First of all I am fairly new here. I usually just read the posts and don’t really reply or say anything. I have to now. It’s kind of a vent and I’m sure there is a reason that you guys will tell me.

Very brief story about me credit score had dipped into the 400’s back in 2016 when I lost my job and my fiancé left me. I had no choice but to default on credit cards. Fast forward three years later I have finally got my score hovering around 640. Depending on the bureau.

Now the venting. I paid off my credit cards to keep my utilization down to nothing. I got my alerts on here that my balances decreased and my score was updated. I log into look and my Equifax dropped 15 points, my Experian dropped 20 points and my TU went up 1 point. I don’t understand this. These bureaus are corrupt and crooked. The system is rigged. You should be commended for paying off your debt not penalized. Why did my scores drop significantly on two and went up on one? I have spent a lot of time and money to get these scores up to where they were only to see them drop for doing something good. It’s hard to get them up to “good” level. I would love to get a credit card that gives me good rewards and a better SL then 1k. But if things like this happen, what is the point?

Rant over. Thank you.

---

Certain FICO scoring models -- FICO 8 among them -- penalize you if all of your revolvers report zero balances. If you let one card report a small balance before you pay it off, the penalty will go away.

[Anonymous]

Thank you for the replies. I will keep a small balance on one of my cards. I have a Cap One Journey with a $5050 limit, Delta Gold Sky Miles AMEX $1000 limit, Discover IT my limit just got increased to $1300 from $1000. So not all is lost. It just sucks to see that number go down so much for thinking you did something right.

[Anonymous]

It does, but it taught you something new about the algorithm that you can now put into play in your own profile. It heals quickly too - put a small charge on whichever card reports next, and once it does, you’ll regain the penalty points. If none report for awhile and you want it resolved sooner, put a charge on your Discover, wait til it posts to your account in a couple days, and then call them and ask for an off-cycle report. They’ll do it and you’ll see your reports updated the next day.

[Anonymous]

Responding to "thornback". Your response is unnecessarily condescending and doesn't even use evidence or sources to back up what you're saying. The man has a legitimate complaint; dismissing his very real situation does not help him at all. 

[Jnbmom]

There was nothing wrong with thornbacks reply. He gave a explanation on how all accounts reporting zero can and does hurt your score .

Reports are not “rigged” either . He gave an informative response .

[FireMedic1]

Come on Sara. Its a learning experience on here. Sometimes the facts are real. But when you dont know how it works and then realize what was wrong when we help. Its always fixed. We all live by Friendly, Supportive, and Respectful on here at all times. Or the boss @gdale6 or the other Mods would be on our case in a Cincinnati Second. Welcome to the forums and Happy Holidays!!!!!!!!!!!!!!