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Score dropping specifically due to only high balances

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CreditBob
Established Contributor

Score dropping specifically due to only high balances

From personal experience, your FICO scores can go from a mid 700 to an 800, and drop to the low to mid 600's, just by having high balances on multiple credit card accounts at the same time. And there is no late payments and no derogatory information 

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Jeffster1
Valued Contributor

Re: Score dropping specifically due to only high balances

Experian does say that utilization overall and per account can potentially affect credit scores 20% to 30% depending on the scoring model. As you know, high balances on multiple accounts can also invite AA. 

FICO 8 (3/1/24) EX 805 EQ 824 TU 844

Current lineup as of 9/23
American Express Gold | American Express Blue Cash Everyday 11K | American Express Blue Cash Preferred 10K I American Express Marriott Bonvoy Bevy 5K I American Express Hilton Honors Surpass 3K I Bank of America Customized Cash Rewards Visa 20K | Kinecta MyPerks Rewards MC 35K | TD Bank Double Up Visa 4K | USBank Platinum Visa 5K | BMO Harris Cash Back MasterCard 12K | Capital One SavorOne MC 3K | Capital One Walmart MC 2K | NFCU Amex 15K | NFCU CashRewards Visa 20K I Citi Best Buy Visa 10K I Macy’s Amex 6.5K I Bread Financial American Express 8K l AAA Daily Advantage Visa Signature 6K I Wells Fargo BILT World Elite MC 30K I BCU Cash Rewards Visa 8K I Chevron Techron Advantage Visa 2.5K I JCPenney Mastercard $6K I UCLA Wescom CU Rewards Visa 7K I
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Thomas_Thumb
Senior Contributor

Re: Score dropping specifically due to only high balances

A couple derog free profiles reported Fico score drops in the 100-120 point range by maxing out multiple revolving accounts. These reports were particularly noteworthy because of the low scores achieved: 590s in one situation and 610s in the other. In both cases the files had a short credit history, added multiple new cards, and then maxed out most, if not all, their revolving accounts. The files lacked any installment history.

 

The good thing for these two is they could bounce their scores to the 700s just by optimizing revolving utilization.

 

 

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
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SouthJamaica
Mega Contributor

Re: Score dropping specifically due to only high balances


@CreditBob wrote:

From personal experience, your FICO scores can go from a mid 700 to an 800, and drop to the low to mid 600's, just by having high balances on multiple credit card accounts at the same time. And there is no late payments and no derogatory information 


Agreed.


Total revolving limits 657200 (536700 reporting) FICO 8: EQ 712 TU 710 EX 708

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