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I have paid off all credit cards, 8 in total. I went to check my score today and it dropped almost 40 points. Never late, oldest line is 6 years old. Seems I should have left the balance on them?
Hi @Anonymous and welcome to the forums.
What is the source of the point loss? Are you checking a CMS or directly from a FICO source?
Experian and Capital One credit wise. Only changes were paying off credit cards.
FICO algos impose an "all zero" penalty if none of your revolvers are reporting a balance, tho 40 pts is probably too high for that alone. But, as @FinStar says, we'd first need to know your score source to help you find the reason for the drop since FICO and Vantage react differently to util and balance changes.
@Anonymous wrote:Experian and Capital One credit wise. Only changes were paying off credit cards.
Capital One is a Vantage 3.0 score. Is your Experian score from Experian's website or another source?
Just had a similar change. I monitor with Experian and my FICO8 dropped 25 points (825 to 800) after all my credit cards reported zero. There were no other changes on my account. I expect when one of my cards reports a balance in a few days my score will bounce back to 825.
Again vantage scores are NOT FICO so trying to compare and figure out is really pointless. They are not used by most lenders ( yes well aware of synch no need for that discussion🙄) and their scoring scales are vastly different.
From experian site.
I'm not asking you to figure it out, just trying to find out if it's happened to anyone else, and what to do to get it back.
@Anonymous wrote:I'm not asking you to figure it out, just trying to find out if it's happened to anyone else, and what to do to get it back.
To tell you what to do to recover the lost points, we would need to figure out the cause of the score loss. But for the point loss you saw on Experian after all of your cards reported $0 balances, you should recover at least a portion of it when at least one bankcard reports a balance, because Experian provides FICO scores and FICO algos have an AZ penalty. For the score loss you saw on Chase's site, Vantage does not have an AZ penalty so it would be due to something else in your profile. As has been said above, Vantage is used by very few lenders, so its metrics haven't been studied much here.