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Need help understanding why my credit dropped 4 points with my BOA CC

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Member

Need help understanding why my credit dropped 4 points with my BOA CC

MyFico is reporting that my BOA account balance dropped from $19 to $4. As a result I lost 4 points.

 

Please explain and advise.

 

Thanks.

Message 1 of 6
5 REPLIES 5
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Super Contributor

Re: Need help understanding why my credit dropped 4 points with my BOA CC

More info needed 

Is there more than one card reporting a balance?

Did another card balance rise in UTL?

In order to help figure it out you'll have to provide a more clearer picture of your credit profile 

Hope this helps 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 2 of 6
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Member

Re: Need help understanding why my credit dropped 4 points with my BOA CC

I only have one credit card with $1000 limit. Usually I use it for gas. I always pay everything and leave a $1 balance at the end of the month.

Message 3 of 6
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Valued Contributor

Re: Need help understanding why my credit dropped 4 points with my BOA CC


@james77 wrote:

I only have one credit card with $1000 limit. Usually I use it for gas. I always pay everything and leave a $1 balance at the end of the month.


Well, first of all, I wouldn't worry about 4 points. And you might want to have two more cards just to decrease the impact felt from changes in the one account. That said, for all of us there's a mysterious "sweet spot" for utilization that varies between 1% and 9% (on one card).  It varies so much from profile to profile that no one can say exactly where somebody else's sweet spot is, but I think you just discovered that your personal sweet spot is a little higher than $4.

 

Or if you have anything else on your report besides the one card (any installment loan?), something else could have accounted for the change.

 

Message 4 of 6
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Super Contributor

Re: Need help understanding why my credit dropped 4 points with my BOA CC


@Gunnar419 wrote:

@james77 wrote:

I only have one credit card with $1000 limit. Usually I use it for gas. I always pay everything and leave a $1 balance at the end of the month.


Well, first of all, I wouldn't worry about 4 points. And you might want to have two more cards just to decrease the impact felt from changes in the one account. That said, for all of us there's a mysterious "sweet spot" for utilization that varies between 1% and 9% (on one card).  It varies so much from profile to profile that no one can say exactly where somebody else's sweet spot is, but I think you just discovered that your personal sweet spot is a little higher than $4.

 

Or if you have anything else on your report besides the one card (any installment loan?), something else could have accounted for the change.

 


+1 to sweet spot 

Mine is different and has changed each time I've added TL's 

The trick is to find yours and maintain it at that point 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 5 of 6
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Super Contributor

Re: Need help understanding why my credit dropped 4 points with my BOA CC


@james77 wrote:

MyFico is reporting that my BOA account balance dropped from $19 to $4. As a result I lost 4 points.

 

Please explain and advise.

 

Thanks.


+1 to needing more information.

OP how long have you had the credit card? What are your MyFICO scores?

(4 points can usually be considered noise anyway)

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 6 of 6
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