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Score dropped after paying off a credit card and it was not closed.

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Super Contributor

Re: Score dropped after paying off a credit card and it was not closed.


@HeavenOhio wrote:

 

Just to throw out an idea, I think you may be experiencing the "all cards at zero" penalty and that it may be offset by something aging. Maybe you reached an AAoA (average age of accounts), AoYA (age of youngest account), or AoOA (age of oldest account) threshold. Or maybe an inquiry become unscorable.


This could be the case and is pretty common actually... not just the aging factor here, but any non-alertable event impacting score at the same time an alertable event happens (which may or may not have impacted score). 

Message 11 of 12
Super Contributor

Re: Score dropped after paying off a credit card and it was not closed.


@macjosh wrote:

I paid off all of my debt.  The only thing that has posted so far is one credit card.  My credit is good 756.  I recieved an alert that my credit score dropped by 8 points because the credit card was paid off.  I have been reading everything to figure out how the total scam of FICO works but cant find any reason my score should have gone down.  Anyone have a suggestion on why this could have happened?  The card was not closed nothing else has happened on my credit except that card being paid off.  I was already only using about 10% of my available credit.


I'm sure it did NOT say "because  the credit card was paid off".

 

The contents of the alert, and the score attached to it, are often unrelated.


Total revolving limits 728500 (602000 reporting) 10/2/19 FICO 8 scores: EQ 744 TU 782 EX 746
Message 12 of 12
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