Score Drop

[Rachel2]

I've been working really hard on my credit the past year and had my scores up into the 730's.  I paid off a $124 balance on a credit card and all three of my scores dropped significantly by 13, 17 and 19 points.  I am just sick!  I don't understand how $124 had such an impact on my credit.  My question is, should I charge something for $125 and  try to keep my monthly balance as that going forward,?  If I do that, will it bring my scores back up ?   Or, do I just ride it out and hope scores go back up on their own?  Thank you! 

[Jnbmom]

Are all you other accounts at zero? If so you will take a hit for that you can charge something small let it report and should get some points back if the above scenario was indeed that .

[SouthJamaica]

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@Rachel2 wrote:

I've been working really hard on my credit the past year and had my scores up into the 730's.  I paid off a $124 balance on a credit card and all three of my scores dropped significantly by 13, 17 and 19 points.  I am just sick!  I don't understand how $124 had such an impact on my credit.  My question is, should I charge something for $125 and  try to keep my monthly balance as that going forward,?  If I do that, will it bring my scores back up ?   Or, do I just ride it out and hope scores go back up on their own?  Thank you! 

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Sounds like you experienced the "All Zero Penalty" which happens when all of your revolvers report at zero balance.

It's just temporary.

Can be avoided in future by simply letting one of your cards report a small balance before paying it off.