I have a credit card from a credit union, that I make occasional purchases on and either pay off in the same month or within a couple of months. Whenever I make a purchase on the card, my credit score goes up. When I make a payment or payoff the balance my credit score goes down. This seems like it is operating opposite to what I'd expect. Why is this happening?
Hi jfullert, Welcome to the forums!
Is this your only revolving credit account? If so, allowing it to report a $0 balance will cause your FICO scores to drop as you are penalized for having 'no revolving credit usage'. At least one of your cards must report a balance -- but not too high of a balance -- to prevent this penalty. Once your card reports a balance again, you'll regain your lost points.