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I know we are all aware that it is best to have one revolving account report a small balance, with all the others reporting $0, for optimal scoring. I just thought I would share how I really got whacked for allowing all accounts to report $0. I decided to alternate the credit card that I allowed to show a balance, so I have about a four or five day period at the moment where all accounts are reporting $0, until the account with an $8 balance reports in a couple of days.
The results... Experian FICO 8 model went from 726 to 712 - a 14 point drop! I knew I would take a bit of a hit, but was surprised to see it be that much. I am hopeful that I will get all these points back when the one account reports in a couple of days.
Paid off all $25 of a card and this happened recently: http://i.imgur.com/FH1isaf.png
Went from $25 balance to $0... score dropped 23 points (776->753)
Strange thing is that I still have an AU card with a balance: I guess they don't count.
Well, that just happened on May 10th. It won't report again until around Jun 10... I'll know then!
@EW800 wrote:
Thanks for sharing. Did you get the points back when letting a card report a balance or do t know yet?
I know it is said that Util has no memory, so I am really hoping to get all 14 of my points back when I have a balance of another card report in a few days.
Hey EW800,
I actually tested this out a while back. Here were my results!
If you scroll down to post #10, you will see that not only did I regain the points lost, my score increased by +3 from where it originally was. Now of course, this may have been due to AAoA increasing, an inquiry dropping, etc., etc. but I did not really follow that closely to see EVERY single change
@JagerBombs89 wrote:Hey EW800,
I actually tested this out a while back. Here were my results!
If you scroll down to post #10, you will see that not only did I regain the points lost, my score increased by +3 from where it originally was. Now of course, this may have been due to AAoA increasing, an inquiry dropping, etc., etc. but I did not really follow that closely to see EVERY single change
Thank you for sharing your history/results!
I am really hoping that I get all 14 points back, and as you experienced, maybe an extra point or two.
One thing I am not looking forward to, but hopefully will just be temporary, Discover pulls my TU 08 score on the 19th of every month and reports it on the statement a few days later. I am near-certain that when they pull on the 19th I will still be in the area of all accounts reporting $0. I will likely take a hit, but hopefully will get it back the following month.
On the bright side.... I keep reminding myself that when compared to what my wife and I went through a few years ago with a ton of credit card debt, it is such a blessing to have gone about 12 months now with no credit card debt!
I got whacked a whopping 28 points on PSECU's EX yesterday!
@EW800 wrote:I know we are all aware that it is best to have one revolving account report a small balance, with all the others reporting $0, for optimal scoring. I just thought I would share how I really got whacked for allowing all accounts to report $0. I decided to alternate the credit card that I allowed to show a balance, so I have about a four or five day period at the moment where all accounts are reporting $0, until the account with an $8 balance reports in a couple of days.
The results... Experian FICO 8 model went from 726 to 712 - a 14 point drop! I knew I would take a bit of a hit, but was surprised to see it be that much. I am hopeful that I will get all these points back when the one account reports in a couple of days.
Same here, I always lose the same amount, 14 points, when I let all report zero balances. Bright side is, no debt.
@Imhotrodcrazy wrote:
@EW800 wrote:I know we are all aware that it is best to have one revolving account report a small balance, with all the others reporting $0, for optimal scoring. I just thought I would share how I really got whacked for allowing all accounts to report $0. I decided to alternate the credit card that I allowed to show a balance, so I have about a four or five day period at the moment where all accounts are reporting $0, until the account with an $8 balance reports in a couple of days.
The results... Experian FICO 8 model went from 726 to 712 - a 14 point drop! I knew I would take a bit of a hit, but was surprised to see it be that much. I am hopeful that I will get all these points back when the one account reports in a couple of days.
Same here, I always lose the same amount, 14 points, when I let all report zero balances. Bright side is, no debt.
Bright side AND bottom line!!