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Fico score dropping everytime my revolving credit decreases

Hardscaper_79
New Member

Fico score dropping everytime my revolving credit decreases

Can anyone tell me why my Fico scores are dropping by 2-6 points everytime my balances are decreasing on my revolving credit accounts? Every other time in the past I have always had score increases by paying down debt, I am Utilizing only 9% of total available credit of $8,875

Message 1 of 9
8 REPLIES 8
Slabenstein
Valued Contributor

Re: Fico score dropping everytime my revolving credit decreases

The only time reducing reported revolving balances is going to cause a decrease in FICO scores is when the AZ penalty or AU AZ penalty is incurred.  If you are seeing simultaneous drops on reported paydown without that being the case then the drops are due to other changes in your profile.  If you want to post your details before and after thr changes we can help you look for the causes.


Message 2 of 9
Hardscaper_79
New Member

Re: Fico score dropping everytime my revolving credit decreases

Sure sure so for example my TransUnion   Fico 8 was 741, it reported a balance decrease of only $1 on one of my bank card accounts decreased, next to the reason for my 6 pt drop, next example today my Experian Fico dropped 4 pts from 684 to 680 with the alert it stated that the balance on my Kohl's charge card decreased from $232 to $209, $23 decrease in debt!  I am baffled and frustrated , almost everytime my balances have decreased in the past I always seem positive increases not negative 

Message 3 of 9
Hardscaper_79
New Member

Re: Fico score dropping everytime my revolving credit decreases

Also I haven't opened any new accounts or any new inquiries 

Message 4 of 9
Slabenstein
Valued Contributor

Re: Fico score dropping everytime my revolving credit decreases


@Hardscaper_79 wrote:

Sure sure so for example my TransUnion   Fico 8 was 741, it reported a balance decrease of only $1 on one of my bank card accounts decreased, next to the reason for my 6 pt drop, next example today my Experian Fico dropped 4 pts from 684 to 680 with the alert it stated that the balance on my Kohl's charge card decreased from $232 to $209, $23 decrease in debt!  I am baffled and frustrated , almost everytime my balances have decreased in the past I always seem positive increases not negative 


The way CMS's present alerts can make it look like the alert-generating profile change caused a score change of X amount, but what they really do is send you an alert whenever a change of such-and-such or such-and-such a nature occurs in your profile and then also the difference between your score at the time of the alert and your score the last time it was pulled.  The difference could have been caused by the alert reason, but it could equally have been caused by any other change in your profile that took place at any time between the time the alert was generated and your next most recent score pull for that bureau on that service.  The causes of 4 and 6 point drops may be difficult to pin down but, again, if you want to post the details of your profile before and after the changes we can help you look for them.  Also, what are your sources for your TU and EX scores?


Message 5 of 9
SouthJamaica
Super Contributor

Re: Fico score dropping everytime my revolving credit decreases


@Hardscaper_79 wrote:

Can anyone tell me why my Fico scores are dropping by 2-6 points everytime my balances are decreasing on my revolving credit accounts? Every other time in the past I have always had score increases by paying down debt, I am Utilizing only 9% of total available credit of $8,875


1.  A reduction of your revolving balances would not cause a decrease in scores; if anything it would cause an increase.

 

2.  The only way to know why there was a decrease in score is to compare the data in your report from the day before with that in the report from the day of the change.


Total revolving limits 677500 (584500 reporting) FICO 8: EQ 758 TU 777 EX 749

Message 6 of 9
SouthJamaica
Super Contributor

Re: Fico score dropping everytime my revolving credit decreases


@Hardscaper_79 wrote:

Sure sure so for example my TransUnion   Fico 8 was 741, it reported a balance decrease of only $1 on one of my bank card accounts decreased, next to the reason for my 6 pt drop, next example today my Experian Fico dropped 4 pts from 684 to 680 with the alert it stated that the balance on my Kohl's charge card decreased from $232 to $209, $23 decrease in debt!  I am baffled and frustrated , almost everytime my balances have decreased in the past I always seem positive increases not negative 


Apparently you are making a big unfounded assumption... that the score change in the alert is caused by the substance of the alert, which is simply not so.

 

MyFICO alerts don't provide reasons for a score change. There are certain events which trigger MyFICO alerts. If there happens to be any difference between your present score at that particular bureau and the previous score reported to you from that bureau, the score change is tacked on to the alert. There is not necessarily any connection at all between the score change and the alert substance.

MyFICO explains this as follows:


Why did my score go up when I got an alert for something negative (or why did my score go down when I got an alert for something positive)?

The short answer: Your FICO® Score may change because of other events not monitored by an alert.

Whenever we send you a credit alert, we also send an updated FICO Score. To ensure you get the most current score, we calculate it based on your entire credit report at that point in time—not just the new information on the alert. This means your new score may reflect other changes that are outside of the things we watch for (see everything we monitor).

Sometimes you may see your score increase when you think it should’ve decreased, and vice-versa, but you’ll always have your most up-to-date and accurate score.
https://support.myfico.com/hc/en-us/articles/360038084633


Total revolving limits 677500 (584500 reporting) FICO 8: EQ 758 TU 777 EX 749

Message 7 of 9
Hardscaper_79
New Member

Re: Fico score dropping everytime my revolving credit decreases

What details would you need? I'm getting the scores from the "MyFICO " subscription and app. I did assume that was the cause because it shows a point decrease next to the alert of the balance decrease is all.

Message 8 of 9
Slabenstein
Valued Contributor

Re: Fico score dropping everytime my revolving credit decreases


@Hardscaper_79 wrote:

What details would you need? I'm getting the scores from the "MyFICO " subscription and app. I did assume that was the cause because it shows a point decrease next to the alert of the balance decrease is all.


Your scorable profile data, basically.  So pretty much the following for each bureau in question, both before and after the change:

 

-All open tradelines, their balances, their limits/original loan amounts, and open dates.

-All reporting closed tradelines w/ their open dates

-# & age of inquiries

-list of any reporting derogs

 

For such minor score differences we may not find anything obvious, but we can still look if you want to share.


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