Really 8pts drop for paying down Discover to $0 from $40 with a CL of $9100!!!

[tjmolly]

I love how experian and equifax both dinged me 8pts exactly on both for paying off my Discover Card from $40 balance to $0 this past month.  Yeah, I'm a credit risk because I paid the card off completely. My CL is $9100 and I have an Amex Blue i keep a small balance on so at least 1 card shows utilization.  Nothing else has changed. CRA's suck royally.  Anyoneknow if this will rebound anytime soon?

[redpat]

Relax it really doesn't matter up 8, down 8 the most important thing is paying on time w/ no interest.

IDK what your score is but if it's high it won't matter even if you are looking to get another card, mortgage or car loan.

Another point, you will drive yourself crazy trying to micromanage your credit score.

[tjmolly]

@redpat, thanks for the input.  My score is in the 740 range but my mortgage FICO is hovering around 720 and that 8pt regular FICO drop makes me nervous as I need to have the 720 mid score to get the specific mortgage product I need.

[SouthJamaica]

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@tjmolly wrote:

I love how experian and equifax both dinged me 8pts exactly on both for paying off my Discover Card from $40 balance to $0 this past month.  Yeah, I'm a credit risk because I paid the card off completely. My CL is $9100 and I have an Amex Blue i keep a small balance on so at least 1 card shows utilization.  Nothing else has changed. CRA's suck royally.  Anyoneknow if this will rebound anytime soon?

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If you have a total of 2 cards, and 1 of them reported a zero balance while the other reported a small balance.... that would not have caused your score to drop.

[Creditplz]

I closed my blispay and I had a $7 balance on it... I paid off the $7 and dropped 9pts, it'll go back up so NBD

[Chris679]

CRA do not generate the scores they report the data. If you think the scoring model sucks then the entire lending industry seems to disagree with you. Don't let all of your revolving accounts report zero. It will ding your score and I was actually declined for Citi Forward back in the day because of no use of revolving credit.

[Anonymous]

I agree with SJ above.  If the OP paid off his Discover card but still had another revolver with a small balance reported, is score wouldn't have dropped.  In fact, it likely would have gone up a few points as he went from 100% of his revolvers reporting a balance to 50%... which leads me to believe that something else probably caused a 10-12 point drop, give or take.

[redpat]

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@Anonymous wrote:

I agree with SJ above.  If the OP paid off his Discover card but still had another revolver with a small balance reported, is score wouldn't have dropped.  In fact, it likely would have gone up a few points as he went from 100% of his revolvers reporting a balance to 50%... which leads me to believe that something else probably caused a 10-12 point drop, give or take.

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I tend to disagree.  Some profiles have a higher score with more credit cards reporting than one or two.  For some reason mine is better w/ four reporting.

My score drops 5 - 6 points w/ one reporting.  All profiles are different and it's not one size fits all.

[Anonymous]

I'm not speaking of number of cards reporting.  Percentage of cards reporting is far more important than number.  I have never heard of any profile having a higher score with 100% of their cards reporting verses a percentage of cards between 1% and 49%. 

Keep in mind, the OP has 2 cards.  You have more than that.  Say you have 10, if you let all 10 report your score would not be higher than if you just let 2-3 report, for example.

[redpat]

BBS, look at my sig I have 4-5 repot of 6 the ink doesn't report on my personal report. So I estimate that OP score is better when both report not just one in their case.