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REALLY Whacked for All Zero Balances....

EW800
Valued Contributor

REALLY Whacked for All Zero Balances....

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.  Smiley Frustrated

 

 

Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Jan 2021: EX8: 850; EQ8: 850; TU8: 850 -- Middle Mortgage Score: 824
In My Wallet: Discover $73.7K; Cap1 Venture $42.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $21K; Cap1 Plat $8.4K; Barclay $7K; Chase Amazon $6K; BoA Plat $21.6K; Citi TY Pref $19K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $285K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 1 of 23
22 REPLIES 22
apple422
Member

Re: REALLY Whacked for All Zero Balances....

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.

 

 

Message 2 of 23
EW800
Valued Contributor

Re: REALLY Whacked for All Zero Balances....

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.
Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Jan 2021: EX8: 850; EQ8: 850; TU8: 850 -- Middle Mortgage Score: 824
In My Wallet: Discover $73.7K; Cap1 Venture $42.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $21K; Cap1 Plat $8.4K; Barclay $7K; Chase Amazon $6K; BoA Plat $21.6K; Citi TY Pref $19K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $285K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 3 of 23
apple422
Member

Re: REALLY Whacked for All Zero Balances....

Well, that just happened on May 10th. It won't report again until around Jun 10... I'll know then!

Message 4 of 23
JagerBombs89
Established Contributor

Re: REALLY Whacked for All Zero Balances....


@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 Smiley Happy

Message 5 of 23
EW800
Valued Contributor

Re: REALLY Whacked for All Zero Balances....


@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 Smiley Happy


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.  Smiley Happy

 

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!   Smiley Happy

 

 

Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Jan 2021: EX8: 850; EQ8: 850; TU8: 850 -- Middle Mortgage Score: 824
In My Wallet: Discover $73.7K; Cap1 Venture $42.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $21K; Cap1 Plat $8.4K; Barclay $7K; Chase Amazon $6K; BoA Plat $21.6K; Citi TY Pref $19K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $285K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 6 of 23
vanillabean
Valued Contributor

Re: REALLY Whacked for All Zero Balances....

I got whacked a whopping 28 points on PSECU's EX yesterday!

 

Message 7 of 23
Imhotrodcrazy
Valued Contributor

Re: REALLY Whacked for All Zero Balances....


@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.  Smiley Frustrated

 

 


Same here,  I always lose the same amount,  14 points,  when I let all report zero balances.  Bright side is,  no debt.  

FICO 08
TU 842 12/8/18
EX 840 12/29/18
EQ 842 12/8/18
(NASA 30K) ( Amex 44k ) ( Freedom 10.6K ) ( US Bank Cash+ 20k, LOC 15k ) Winners never quit, and quitters never win
last app 2/15
Message 8 of 23
MarineVietVet
Moderator Emeritus

Re: REALLY Whacked for All Zero Balances....


@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.  Smiley Frustrated

 

 


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!!

Message 9 of 23
EW800
Valued Contributor

Re: REALLY Whacked for All Zero Balances....

A bit of an update....

Equifax has updated showing all accounts $0. The results: Down 9 points.

TU has updated showing all accounts $0. The results: Down 11 points.

As mentioned above, Experian went down 14.

Can anyone confirm that I should get all these points back when an account reports a few dollars in a few days?
Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Jan 2021: EX8: 850; EQ8: 850; TU8: 850 -- Middle Mortgage Score: 824
In My Wallet: Discover $73.7K; Cap1 Venture $42.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $21K; Cap1 Plat $8.4K; Barclay $7K; Chase Amazon $6K; BoA Plat $21.6K; Citi TY Pref $19K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $285K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 10 of 23
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