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

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Subexistence
Established Contributor

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


@Anonymous wrote:

@Subexistence wrote:

So if I had 2 cards one of which is Discover reporting 6% utilization, and the other is not being used and reporting 0% utilization, then I would be hurting.


Hurting relative to what?  Relative to having both cards report 0%, you're in a better place with one of the two reporting a small balance.

 

Relative to maximizing your score for the utilization sector of scoring, you'd need to add 1 more card to your revolver collection so that you have the ability to let 1 of 3 report a small balance (33%) which is a number less than 50% and greater than 0% which is believed to be the most ideal situation.

 

Basically with only 2 cards you are doing the best you can (letting 1 of 2 report a small balance) but you could be doing better with the addition of a 3rd card.


I'm saying that like 2 cards with small balance may be better than just 1 card with small blance. I'm not actually going to use my 2 cards even if using 2 cards does turn out to be beneficial.








Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-795,Eq08-807,Tu08-787,EX98-761,Eq04-742
Goal Score: Ex98-760,Eq04-760


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Message 21 of 26
Anonymous
Not applicable

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

If you let both of your cards (100%) report small balances relative to just 1 of 2 (50%) you wouldn't receive a score increase.  On some profiles that may result in a score drop where on others it may result in the score remaining the same, but I do not believe anyone would receive a score increase in going from 50% to 100% cards reporting.

Message 22 of 26
redpat
Senior Contributor

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

Well I let all my card report a statement balance and ended up -2 ex, +1 eq and -3 tu, util under 10%, go figure.  So really not a material factor. 

 

A while back I was worried from what everyone stated having on card reporting over 30% and I had one report  60%,  my FU report 15k and I had no change in my scores and no change when I paid in full the next month when it reported 0 w/ four cards reporting a statement balance.  Total util was in the low teens and 7%-8% the following month.

 

What I'm trying to say is everyone's profile is different and what happens to one won't necessarily happen to the other.

 

 

 

 

Personal Cards: Amex Plat | Amex Delta Res | CSR | Citi AA Exec Business Cards: Ink+ | Amex BGR
Message 23 of 26
Thomas_Thumb
Senior Contributor

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


@redpat wrote:

Well I let all my card report a statement balance and ended up -2 ex, +1 eq and -3 tu, util under 10%, go figure.  So really not a material factor. 

 

A while back I was worried from what everyone stated having on card reporting over 30% and I had one report  60%,  my FU report 15k and I had no change in my scores and no change when I paid in full the next month when it reported 0 w/ four cards reporting a statement balance.  Total util was in the low teens and 7%-8% the following month.

 

What I'm trying to say is everyone's profile is different and what happens to one won't necessarily happen to the other.

 


^ Quite true, scoring factors are weighed differently depending on which scorecard your profile is assigned. Even within a given scorecard, results may vary.

 

For many profiles allowing a balance to report utilization up to 69% on a single card has no impact on score if aggregate utilization is maintained below 9%. Significant score penalties on a single card may not come into play until a 70% UT threshold is exceeded or even until "a max out condition" is reached - which I peg at 90%. I did not see a score drop when one of my cards reported 75% UT

 

I don't think there are utilization scoring penalties - regardless of profile - if aggregate UT is under 9% and individual card UT is less than 29%. Thus, the broad based guideline of:under 30% UT on cards.

 

In truth, many profiles should be able to report UT on an individual card up to 49% with minimal (or no) impact on score as long as other open cards not reporting balances contribute enough to aggregate CL to keep aggregate UT under 9%. So, the "under 50% utilization on an individual card" is also a good general rule of thumb.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 24 of 26
KatT1
Established Member

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

I just had the exact same thing happen to me, mine went down 10 points because I paid off a card.  I actually just paid off several cards that haven't reported yet, I hope each one of them doesn't ding me 10 points.  It seems as if they want them low (like 10% of available) but not paid off.  Makes absolutely no sense to me.  i'm hoping it's a temporary ding, but we shall see.

 

Message 25 of 26
Anonymous
Not applicable

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

You shouldn't receive a 10 point drop from paying off a single card unless it was your final card with a balance that has now reported no balance.  10 points is typically a bit low for that though; usually one would expect a score drop more in the ballpark of 15-20 points from reporting all zero balances across all revolvers.

 

And no, a person wouldn't receive multiple 10 point drops as they paid off multiple cards so don't worry about that happening.

Message 26 of 26
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