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Score dropped after paying down balances...

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Regular Contributor

Score dropped after paying down balances...

I paid down a couple of balances recently. And, it showed under each balance that I paid down that my Equfax score had dropped 4 points... I'm new to MyFico and Fico scoring. So, I'm completely confused.

 

Does anybody know why this would drop a score?

 

To further clarify, I paid off my Discover card- 32 dollar balance. And, I paid off my Best Buy card - had a 553 dollar balance.

1/14/19 - TU: 457 | EX: 403 | EQ: 458
Message 1 of 17
16 REPLIES 16
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Valued Contributor

Re: Score dropped after paying down balances...


@Dhar33 wrote:

I paid down a couple of balances recently. And, it showed under each balance that I paid down that my Equfax score had dropped 4 points... I'm new to MyFico and Fico scoring. So, I'm completely confused.

 

Does anybody know why this would drop a score?

 

To further clarify, I paid off my Discover card- 32 dollar balance. And, I paid off my Best Buy card - had a 553 dollar balance.


How many of your cards are now reporting a balance?

Message 2 of 17
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Regular Contributor

Re: Score dropped after paying down balances...

Only cards reporting balances now are:

 

BOA Better Balance MC : 211

AMEX ED: 33

AMEX BC: 80

1/14/19 - TU: 457 | EX: 403 | EQ: 458
Message 3 of 17
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Valued Contributor

Re: Score dropped after paying down balances...

Normally when I read posts about score drops after paying off balances it is because a person's report has all accounts reporting zero balances. That could cause a ding in scoring.

 

Since that's not the case in your situation I wonder if there have been any other changes to your report.

 

Any new TLs? New INQs? 

Message 4 of 17
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Super Contributor

Re: Score dropped after paying down balances...

+1

OP you have only just joined? Like two days?

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 5 of 17
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Moderator

Re: Score dropped after paying down balances...

If the number of cards reporting a balance has increased then its possible that overcame the utilization $ amount and caused a decrease. Fico also scores utilization on the number of cards reporting a balance (even if its $1).

Message 6 of 17
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Regular Contributor

Re: Score dropped after paying down balances...

Yeah, just joined a few days ago. I'm pretty new to all of this.

1/14/19 - TU: 457 | EX: 403 | EQ: 458
Message 7 of 17
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Regular Contributor

Re: Score dropped after paying down balances...

That's understandable. I try to keep my utilization really low, though... I have about 22000 available credit. And, I'm using maybe... 480 dollars of it.

1/14/19 - TU: 457 | EX: 403 | EQ: 458
Message 8 of 17
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Valued Contributor

Re: Score dropped after paying down balances...


@Dhar33 wrote:

That's understandable. I try to keep my utilization really low, though... I have about 22000 available credit. And, I'm using maybe... 480 dollars of it.


You're doing a great job! How many accounts were reporting a balance before drop? And how many after?

Message 9 of 17
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Valued Contributor

Re: Score dropped after paying down balances...

Seems like all the threads these day in this Topic seems to be why is score going down when utilization goes down..... I feel like there is something else going on.

"I am become death, the destroyer of worlds"
Message 10 of 17
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