Score drop because of a balance decrease?

[Anonymous]

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@sarge12 wrote:

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@Anonymous wrote:

I just got an email from myFICO that there were changes detected and I checked the alerts and my EX dropped 11 points because of a balance decrease. I payed off one of my CC balances because I got a Cap1 card last month and on the 20th was the first statement so I payed off the other one which had a $16 balance. I payed it off expecting Cap1 to report because they told me they report 2-3 days after statement cut, so I would only have one CC with a balance and the other reporting a small balance. but Cap1 hasn't reported and the other one already did and I got the email that changes were detected and my TU and EQ went up 3 points. Why did EX go down 11 points and other 2 go up?

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The thing about alerts that people can not seem to understand is the alert is not showing the cause of a credit score change. It shows an alertable event, and it will show there has been a score change. The score change may be due to the alertable event, or may be due to something else in the credit report entirely. Interpret it as EX dropped 11 points, and there was a balance decrease...not because of, to look at the alert and see an 11 point drop arrow beside it can lead to the wrong assumption.

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+1

[Anonymous]

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@Anonymous wrote:

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@Pway wrote:

I am going to guess that all your accounts reported a zero balance and that is the reason.  Remember that util has no memory and you will regain those points.  

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I think that might be what happened. I only have those two cards. Cap1 hasn't reported yet and the other one reported a 0 balance. The only thing with a balance right now is a loan that I have which has a $1600 balance. Does anyone know how often Cap1 reports? They told me 2-3 days after the statement cut and they haven't reported.

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Like someone else mentioned in your thread. It's probably not a singular event that caused a drop in your score. When you have a thin file, the smallest change (new inquiry, $0 balance reporting, etc) can impact it.