Paid balance on Credit Card score dropped 20 points

[Anonymous]

Hi,

As the title says, I paid the balance on Credit Card and my score dropped 20 points.

I am new to the US (May 2016) and have a top credit score in the UK. Unfortunately I had to start from scratch when arriving.

Doing my best to raise the score but I do not understand what I need to do to stop the large drops in score from simply being responsible and paying my credit card on time.

I use the cards with 1% utilization.

Is the idea to pay off all but say $1 each month?

Thanks for any help.

Rob

[medicgrrl]

---

@Anonymous wrote:

Hi,

As the title says, I paid the balance on Credit Card and my score dropped 20 points.

I am new to the US (May 2016) and have a top credit score in the UK. Unfortunately I had to start from scratch when arriving.

Doing my best to raise the score but I do not understand what I need to do to stop the large drops in score from simply being responsible and paying my credit card on time.

I use the cards with 1% utilization.

Is the idea to pay off all but say $1 each month?

Thanks for any help.

Rob

---

Letting a balance of 1-9% report to the credit bureau looks good.  It shows that you use the card and manage it well.  Most credit cards report your statement balance so if you are paying it off in full prior to the statement cutting then that is hurting you.  Also, do you only have the 1 card?  It seems for best scoring, you should have 3 cards and 1 installment loan.  The scoring system likes to see less than 50% of your cards reporting a balance.  

[newhis]

Welcome to USA. Some lenders will report a $1 balance as $0.

1.- you don't need to micromanage your cards all the time

2.- a 740 score will give you the best rates in most credit cards and auto loans

3.- all $0 balance will hurt your score

4.- PIF is good enough if you have several cards and your overall util is less than 9%

5.- to max score for the month, let all cards report $0 balance but 1, that one could be $5, $10 or even 5% the limit

6.- if you don't have an open loan, get a SSL, follow the technique to get the loan for 5 years but balance less than 9% since first month

DW scores are around 780, she has a card over 40% balance (BT), a few cards reporting util less than 9%. She knows that her score could be at 800 without the BT and only let 1 card report a balance. She even applied for 2 cards and got a good limit and the lowest APR possible. We will micromanage and let only 1 card report a balance 4-6 months before a mortgage, anything else our scores are good enough to get the best deals.

[Anonymous]

Thanks for all the advice.

In terms of the credit cards, I've got 2, one secured and one with a super low credit limit on.

Both are paid using the 'pay balance in full automatically'....so should I pay say 95% off each month so there's a balance?

Conversely would this mean my payments aren't 'on time'?

Thanks again for the advice,
Rob

[SouthJamaica]

---

@Anonymous wrote:
Thanks for all the advice.

In terms of the credit cards, I've got 2, one secured and one with a super low credit limit on.

Both are paid using the 'pay balance in full automatically'....so should I pay say 95% off each month so there's a balance?

Conversely would this mean my payments aren't 'on time'?

Thanks again for the advice,
Rob

---

Have one card report a zero balance, with the other reporting 29% or less.

Pay in full the one reporting.

This will optimize your credit card utilzation scoring factors.

[HeavenOhio]

When are the automatic payments happening? I would think they'd be paying the statement balances and not new charges. New charges should become the next statement balance.

[Anonymous]

First off, thank you for all the quick replies, obviously it's what makes a forum great and just wanted to say it's much appreciated.

The first card
- Auto payment was 16th of the month (autopay cancelled yesterday)
- Due date: 21st
- End date: 26th

Second card:
- Auto payment was 25th of the month (cancelled yesterday)
- Due date: 25th
- End date: Unsure, let me know if this is needed to help.

Also, don't count out general stupidity here, I've never had a need to use credit cards, always debit as I don't like the idea of using money I don't have and really only want to use it for raising the credit score.

Other info:
Scores:
- Equifax: 690
- Transunion: 712
- Experian: 698

- One 'credit builder loan', 0% interest, $100 per month, started October 2016, ends August
- Did have two auto loans, started June & September 2016, paid both off in January to reduce overall credit owed
- Had a 'SelfLender.com' 0% credit builder loan, $250 per month. Paid off about a week ago

My wife (US citizen), has credit cards too, is it worth being an 'authorized user' to increase the credit available? I haven't been able to before as the credit score has been too low (and still might be I'm guessing).

Overall 'debt' e.g 0% credit builder loan and credit cards = $150-170 per month.

Thanks again for any help.

Rob

[Anonymous]

Hi guys,

The card is showing 'Minimum Payment Due:  $0.00', should I 'carry the balance' and pay off in May?

And if so should the May payment be 'in full' or 95%?

Details:

• Last Statement Date:      3/28/17
• Last payment (auto pay) 3/25/17

• Latest Balance:                $15
• Minimum Payment Due:  $0.00
• Payment Due Date:         4/25/2017

Apologies for the simple questions.

[NRB525]

Latest Balance may be $15, if you made a charge after the statement printed.

What is the Statement Balance, on the CC statement which says "Minimum Payment $0" due? If there is any statement balance, then pay that soon.