Utilization dropping but scores too?? UGH!

[Anonymous]

I am beyond frustrated. I have high utilization on all my cards. Slightly related they are all starter cards with low limits that I sometimes have to use for work travel (other board topic) and right now I have some of them very high due to moving expenses a few surprises that have popped up. The thing is, I have been trying to pay down everything, but due to budget constraints (moving right now), I have to do it slowly.

So when my utilization went through the roof, the scores crashed- OK I understand. But then, when I am starting to pay down (after the big thump), overall credit balance- (less), utilization percentage (less) from 96%> 90%> 84%, my score is DROPPING? -2 points here, -5 points there!

I also understand the other posters on here that pay off all balances to zero and the scores drop (from not carrying anything or looking ‘inactive’) but that is clearly not the case here. Will this bounce back over time? Has anyone else experienced this?

Stats: Overall Balance 5K. Scores have plummeted an average of 10- 15 points, most recently: Latest alert was a 50.00 balance amount decrease followed by a -5 from Experian.

Thanks for any insight!

[racer-x]

Hmmm. edit.

[Jolo0801]

I am having the same issue.

The model on this site has to be unreal..

My my equifax pulled yesterda and today my score increased 2 points.

But when my card balances decrease my scores decrease with it.

The logic doesn't make sense.

[racer-x]

But but but but, it's because something else may have changed.  One of your accts aged by a day, or an inquiry is set to fall off on Aug 16 instead of August 17, or your previous balance increased twice as fast compared to the month before, but then decreased 4 times exponentially, and then you forgot to feed the dog on the same day that your statement cut that has been at $0 balance for 2 months....see how it's all tied together? lol

Guys, I'm being overly sarcastic....but yea, a vast majority of us are having the same issues.

Best thing to do is use free credit score sites, and as along as you know you're doing positive things with your credit, then you should be ok.  Maybe buy the occassional fico score or get cards that furnish fico scores.

[Anonymous]

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@racer-x wrote:

But but but but, it's because something else may have changed.  One of your accts aged by a day, or an inquiry is set to fall off on Aug 16 instead of August 17, or your previous balance increased twice as fast compared to the month before, but then decreased 4 times exponentially, and then you forgot to feed the dog on the same day that your statement cut that has been at $0 balance for 2 months....see how it's all tied together? lol

Guys, I'm being overly sarcastic....but yea, a vast majority of us are having the same issues.

Best thing to do is use free credit score sites, and as along as you know you're doing positive things with your credit, then you should be ok.  Maybe buy the occassional fico score or get cards that furnish fico scores.

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Have continious monitoring here, where I have for a year. Have tracked every change and all have been accounted for, including inquiries, car loans over the past 2 years, negative items and revolving accounts. All else has remained stable with the exception of negative items being removed from my credit file due to being past the allowable reporting period, and the addition of said car loans and small revolving accounts balance increases and subsequent payments. This has been something completely recent and even after the first post, I have received notice for another -8 point hit to my EQ for a $33 decrease in a bankcard account. 

[Anonymous]

I dont think you get a score jump for decreasing a card from 90%to say 75% util. No matter what it is very high. I bet when you start droping util below 30% then 10% you see a positve score change. The scoring model does not remember balance history (utilization) like payment history. IE;

one month your score is 700 with overall 8%util

next month everything reports 90% util and score drops 60 pts

third monthyou pay everything down to 6% util before statements cut. After all is reported, assumming nothing else changed, you score should rebound to AROUND the same 700 from the first month.

I just made this up as a example of my understaning and to show my point of FICO scoring models not retaining any memory history of high utilization.

[gdale6]

Frankly I dont even worry about score moves +- 20 points, changes can be something as small as how a single month is being reported in the payment history. For those of you that have high utilization just get your cards paid down, you want to end up with only 1 that reports no more than 9% of its individual CL to the CRAs and then again you only really have to do this if you are planning to app for new credit.

[Anonymous]

Totally valid points in both follow up posts, it's just frustrating to even see a drop of 5, 8 or 10 points when one has been working for some time to make great gains of a 50 point rise. Additionally, when seeing high utilization keep a score stagnant for some time, only for it to start a lowering trend again when actually trying to pay things down.

Granted, I am not expecting to see any 'recoveries' in my score while utilization is still high, but after a high period to then see more damage when bringing the percent of overall revolving debt down is disheartening. 

[Anonymous]

I feel your pain! Just keep chopping away at it, doing what you are doing and it will show up in your scores!

[Anonymous]

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@Anonymous wrote:

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@racer-x wrote:

But but but but, it's because something else may have changed.  One of your accts aged by a day, or an inquiry is set to fall off on Aug 16 instead of August 17, or your previous balance increased twice as fast compared to the month before, but then decreased 4 times exponentially, and then you forgot to feed the dog on the same day that your statement cut that has been at $0 balance for 2 months....see how it's all tied together? lol

Guys, I'm being overly sarcastic....but yea, a vast majority of us are having the same issues.

Best thing to do is use free credit score sites, and as along as you know you're doing positive things with your credit, then you should be ok.  Maybe buy the occassional fico score or get cards that furnish fico scores.

---

Have continious monitoring here, where I have for a year. Have tracked every change and all have been accounted for, including inquiries, car loans over the past 2 years, negative items and revolving accounts. All else has remained stable with the exception of negative items being removed from my credit file due to being past the allowable reporting period, and the addition of said car loans and small revolving accounts balance increases and subsequent payments. This has been something completely recent and even after the first post, I have received notice for another -8 point hit to my EQ for a $33 decrease in a bankcard account. 

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I've never had a score change that wasn't directly explainable.

One thing of note.... If you have multiple cards with balances...... FICO doesn't like that.... And the bucket jumping because of these constantly changing balances and amounts is obviously the reason for the erratic behavior.