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Score Dropped after payment resulted in zero balance

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Anonymous
Not applicable

Score Dropped after payment resulted in zero balance

I've been working really hard on my score the past five years. It has gone from 595 to 720.

 

Recently, I had a total charge of 147.00 on one card, and 25.00 on another.  I always pay any charges in full way before they are even due and keep a zero balance.

This time however, I missed bringing my cards to a zero balance before Capital Ones reporting date to the bureaus  (not the due date). And my score plummeted

across all the CBs; one went down 19 points.... WHY?  I don't have much in line of credit (3001.00) and I dont use much. MyFico report shows the change as  "one of your accounts has changed and the explanation is the zero balance.  Nothing else on my report changed.  I thought I was doing the right thing by paying them off in full each month if I charge??  Thanks 

Message 1 of 7
6 REPLIES 6
SouthJamaica
Mega Contributor

Re: Score Dropped after payment resulted in zero balance


@Anonymous wrote:

I've been working really hard on my score the past five years. It has gone from 595 to 720.

 

Recently, I had a total charge of 147.00 on one card, and 25.00 on another.  I always pay any charges in full way before they are even due and keep a zero balance.

This time however, I missed bringing my cards to a zero balance before Capital Ones reporting date to the bureaus  (not the due date). And my score plummeted

across all the CBs; one went down 19 points.... WHY?  I don't have much in line of credit (3001.00) and I dont use much. MyFico report shows the change as  "one of your accounts has changed and the explanation is the zero balance.  Nothing else on my report changed.  I thought I was doing the right thing by paying them off in full each month if I charge??  Thanks 


1. Congratulations on the good job you've done.

2. I would need to know (a) the number of cards that you have and their limits, (b) the balances that reported in previous cycle, and (c) the balances that have reported in this cycle, to figure out what happened.

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 2 of 7
Anonymous
Not applicable

Re: Score Dropped after payment resulted in zero balance

Thanks!

 

I have two cards; one with only 501.00 limit and the other with a 2,000.00 limit.

My previous months balance for both was Zero.  Then I charged 147.00 on the card with 2,000 limit.

25.00 on the card with the 501 limit.  I paid both in full prior to due date.

 

Thanks!

Message 3 of 7
SouthJamaica
Mega Contributor

Re: Score Dropped after payment resulted in zero balance


@Anonymous wrote:

Thanks!

 

I have two cards; one with only 501.00 limit and the other with a 2,000.00 limit.

My previous months balance for both was Zero.  Then I charged 147.00 on the card with 2,000 limit.

25.00 on the card with the 501 limit.  I paid both in full prior to due date.

 

Thanks!


If you paid both to zero prior to due date that conflicts with what you said in your initial post.

 

If both your accounts reported at zero one month, and then the next month both your accounts again reported at zero, I have no idea why there would have been a change in your score.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 4 of 7
Anonymous
Not applicable

Re: Score Dropped after payment resulted in zero balance


@SouthJamaica wrote:

@Anonymous wrote:

Thanks!

 

I have two cards; one with only 501.00 limit and the other with a 2,000.00 limit.

My previous months balance for both was Zero.  Then I charged 147.00 on the card with 2,000 limit.

25.00 on the card with the 501 limit.  I paid both in full prior to due date.

 

Thanks!


If you paid both to zero prior to due date that conflicts with what you said in your initial post.

 

If both your accounts reported at zero one month, and then the next month both your accounts again reported at zero, I have no idea why there would have been a change in your score.


I'm thinking OP meant the cards posted with a balance on the statement date, but then he paid to zero before the due dates. 

Message 5 of 7
Random_idiot
Established Contributor

Re: Score Dropped after payment resulted in zero balance

So basically you're saying you have a 0% utilization? If so, that does negatively affect your score. you are supposed to carry a 0%>10% utilization for it to not be negative towards your score..


Total Credit Line- $89,300| Personal- $78,650 | Biz- $5,650
Current Score [F9]: EX-721 || TU-759 || EQ-768 || AAoA-2yrs7mo || uti- 1% || 100% payment history || 9 inq
Message 6 of 7
Anonymous
Not applicable

Re: Score Dropped after payment resulted in zero balance

My scores dropped 16-18 points when I paid my balances down to $0.  The good thing is utilization has no memory.  The second a credit card posts a balance, you will regain those points.  If you have any regular subscriptions like Netflix, use a credit card and let it post.  My husband does this because he hates to have a balance on his cards.  I explained to him how it hurts his scores.  In the past, he would plan when he needed to apply for credit and only let a balance report when he needed to get his scores up.

 

Random, for optimal scoring, fico likes to see under 10% utilization.  Without any balances reporting, the scoring module can't score how much credit you use, how you pay etc.  It basically has nothing to score so your scores drop to what it has for your base score (AAoA, inq, total credit etc).  It seems unfair but it makes sense.  

Message 7 of 7
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