Paid off credit cards 40 point drop???

[Jnbmom]

---

@Slabenstein wrote:

---

@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.

---

At least in our experience although not a penalty for all zeros, vantage will swing tremendous for virtually little balance changes. I have lost upwards of 15 points for an account going up 8 bucks 🙄 But as stated previously on this thread and numerous others it's not FICO so it's difficult to try to figure out and doesn't matter much in the lending world. 

Also asking how to get it back up is trying to figure it out , let a few dollars report it will probably swing back up 

[SouthJamaica]

---

@Anonymous wrote:

Experian and Capital One credit wise. Only changes were paying off credit cards.

---

Those are not FICO scores 

[SoCalGardener]

I like Credit Karma because it tells you why your score changed. In a situation like this, I'd be able to see at a glance what caused it. Although it won't help now, you might want to consider signing up; at least in the future you'd see explanations for changes.

[Anonymous]

Experian does provide Fico scores. Did that score change by 40 pts, too? Or was it just the Creditwise, Vantage score?

It does sound a bit steep if that was the change in your Experian score.

[CreditMagic7]

---

@Slabenstein wrote:

---

@Anonymous wrote:

  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 sake of the OP's understanding (per AZEO) the ongoing concensus is that FICO DEMANDS (sets it's scoring metric) that at least a single Bankcard tote a lingering balance (preferably in the area of 9%) to prevent a drop of at least -20 variable points if not more (depending on profile).

The question is  EXACTLY which card constitutes THAT BANKCARD. I read Synchrony Cards don't fit that criteria anymore than store cards. The million dollar question is are Credit Union cards considered acceptable and/or co-branded Amex/Visa/MC sponsored by the same banks or others also OR NOT meet the FICO parameter as a AZEO Bankcard or not.

We all know the mainstream legacy us bank, citicards, bofa, etc. do meet the AZEO requirements when utilizing them for maximum scoring and avoiding the points wipeout or penalty.

Which IMHO speaks volumes that FICO Scoring Criteria Policy are geared if not in the pockets of the the big banks. 

Courtesy @gdale6 

https://ficoforums.myfico.com/t5/General-Credit-Topics/AZEO-Method-Question-Store-Cards-vs-V-MC-D/td-p/6307057 

[RTOrockstar]

I just felt something similar. My Experian dropped from 671 to 622(49pts) because all my accounts were at zero balance. I did have 2 hard pulls so that could account for maybe 10 pts of that perhaps and an account that had me listed as an AU was closed, but since it was at zero balance, I don't see how that would effect things. My new Cap One card hasn't reported yet so it's not bothering me yet.

So yea, FICO doesn't like all zeroes. 

[Anonymous]

As expected, one of my cards reported at 1% usage and my score increased back to 825. Confirms AZEO maximizes score.

[Horseshoez]

---

@Anonymous wrote:

As expected, one of my cards reported at 1% usage and my score increased back to 825. Confirms AZEO maximizes score.

---

I would suggest your experience proves nothing regarding AZEO, what it does prove is AZ has a significant point penalty.

[Anonymous]

Understood. Now that you mention it, AZEO is not the key, it is AZ. I still get 825 score with multiple cards reporting.

[soccer21]

Yes that exact dookey happened to lost 39 points (fico) Experian.

Fico monitoring system