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Paying down three credit cards had no impact on my score

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New Member

Paying down three credit cards had no impact on my score

Hi everyone,

I recently paid my three credit cards down to 10% balance on each. According to the myFICO simulator, this should have resulted in a 10-30 point increase across the three bureaus. However, my score did not increase at all for any of the bureaus. This is my first month using myFICO - I was wondering if the scores aren’t adjusted until the monthly credit report is pulled again, or if there really wasn’t an impact for paying down these cards. Any insight is appreciated. Thanks!
Message 1 of 18
17 REPLIES 17
Super Contributor

Re: Paying down three credit cards had no impact on my score

Hi, the magic threshold number is 8.9%. 

Message 2 of 18
Regular Contributor

Re: Paying down three credit cards had no impact on my score


@ACinFL wrote:
This is my first month using myFICO - I was wondering if the scores aren’t adjusted until the monthly credit report is pulled again

@kilroy8 wrote:

Hi, the magic threshold number is 8.9%. 


If your utilization was above 28% and you paid it down to 10%, you may see a slight bump in your scores on the next credit report. However, you will see optimal results if you pay your cards below 8.9% as mentioned.

 

Even better: if you pay all your cards down to 0, but leave just one at around 1% - 8.9%, you will have achieved the maximum amount of points possible in regard to utilization.


Message 3 of 18
Established Contributor

Re: Paying down three credit cards had no impact on my score

Have all or any of the 3 cards you paid down reported the new balances yet? It can take a little while for everything to sync up.





~~ Former Royal Navy Submariner - Proud to have served ~~
Message 4 of 18
Super Contributor

Re: Paying down three credit cards had no impact on my score


@ACinFL wrote:

I recently paid my three credit cards down to 10% balance on each. According to the myFICO simulator, this should have resulted in a 10-30 point increase across the three bureaus. However, my score did not increase at all for any of the bureaus. This is my first month using myFICO - I was wondering if the scores aren’t adjusted until the monthly credit report is pulled again, or if there really wasn’t an impact for paying down these cards. Any insight is appreciated. Thanks!

A few points:

 

  • Simulators cannot be trusted.  Never believe a thing they say, as they're historically very inaccurate.
  • Paying down balances isn't enough information to determine if you should expect a score increase.  You'd have to:
  • List all of your before/after balances and the credit limits on each account.
  • Score gains are had only when utilization thresholds (both aggregate and individual) are crossed.
  • The FICO algorithm doesn't know that a balance was paid down until the new paid down balance is reported to the bureaus.

If you could reply back with the data requested from the center bullet-point above that would be helpful.

Message 5 of 18
Super Contributor

Re: Paying down three credit cards had no impact on my score


@kilroy8 wrote:

Hi, the magic threshold number is 8.9%. 


If the OP is coming down from 28.9% or less, that is usually true... but we don't know if he's coming down from something higher, like (say) 75% or something.

Message 6 of 18
Super Contributor

Re: Paying down three credit cards had no impact on my score


@ACinFL wrote:
Hi everyone,

I recently paid my three credit cards down to 10% balance on each. According to the myFICO simulator, this should have resulted in a 10-30 point increase across the three bureaus. However, my score did not increase at all for any of the bureaus. This is my first month using myFICO - I was wondering if the scores aren’t adjusted until the monthly credit report is pulled again, or if there really wasn’t an impact for paying down these cards. Any insight is appreciated. Thanks!

1. The simulators aren't significant.

2. Try to keep your aggregate revolving utilization at 8.9% or less.

3. Try to have 2 of the 3 cards report zero balances if possible.

4. As to when the scores are 'adjusted' it depends where and how you're getting your scores.


Total revolving limits 639500 (558000 reporting)
Message 7 of 18
New Member

Re: Paying down three credit cards had no impact on my score

Thanks for all the feedback. I paid off two of the cards yesterday afternoon to a zero balance and the other to a little less than 8%.
Message 8 of 18
New Member

Re: Paying down three credit cards had no impact on my score

My utilization on all three of the cards was previously over 90%. Each card is only a $300 limit.
Message 9 of 18
New Member

Re: Paying down three credit cards had no impact on my score

Thanks, I paid off two cards yesterday and the third is now less than 8%.
Message 10 of 18
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