Why did my credit score drop when I PIF?

[Anonymous]

My credit score dropped from 772 to 764 on my Citi Fico page.  The main reason is I have too many accounts with balances.  What?  I have 10 credit cards.  On the 29th of July I paid all of my cards in full except Blispay which is a hidden tradeline.  12 days ago I paid everything off.  I owe about $400 on 4 credit cards this month I have used.  WTH?  I keep watching my credit closely trying to get above 800 and they keep playing these games.

[Anonymous]

What is your Util on each card when they reported? 

[Anonymous]

From all I've read, best to allow at least one card report a smallish 1%-9% balance. Paying off all cards can drop scores slightly.

Adding more accounts and/or old closed accounts being removed can drop scores due to lower average age of accounts (aoaa). Completely paying off an installment loan, such as car or mortgage, etc can drop scores, if one has no other remaining installment loans with a balance reporting.

Not using a card for a long time can reduce one's credit ulitization padding. While the tradeline will still appear, an inactive account credit limit won't be counted. Best to rotate usage across cards over a 3-6 month period. Can go long as a year if need be, but keeping it shorter better ensures util padding; less chance of an account being closed due to inactivity.

I've also read, though not sure if true or not, that credit cards with higher limits (under $5,000 verses $5,000+) may be scored somewhat differently.

Finally, time alone is a large factor to breaking 800s. Based on the score you posted, waiting it out, assuming continued usage in the meantime, you'll likely see 800s within a year or two.

[Anonymous]

My utilization has never gone above 3% across all cards.  I have 10 that average $5k limits.  I have a strategy for using my cards.  My Sportsman's Guide statement cuts on the 7th so I will use that card because it is not owed until approximately 50 days.  I usually have a balance from $25 to $75 on each every month except for one where I may put $300 or $400 of use on it.  Always pay in full.  I never SD a card and try to use all 10 every month for some sort of purchase.  But the page says I have too many balances on too many cards.  How can that be if the only balace that remained after payment was on a card that doesn't report to the credit bureaus? 

[Grafton88]

It seems to me that you would have to see what date your Citi FICO page checks the credit agencies.  Does it show which cards show a balance on that date or does it just give you a message that too many cards show a balance?

[Anonymous]

It doesn't show how much I owe on each account.   The FICO score on Citi's site is very unpredictable as to when it will change.  Last change was 6-28-2016.  Changed today on 8-10-2016.  It's different every month or every two months when it changes.  Tonight my Credit.com score will change at 3:15am.  That's when the next business day numbers change over. That's when my Credit.com score changes.  I am projected to go to 805 but I have been projected to go over 800 for 3 terms now and I'm still sitting at 792 on that FACO.  Credit.com now reports every 2 weeks instead of once a month. I'll take a snapshot of my changed score just to pat myself on the back.

[SouthJamaica]

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@Anonymous wrote:

My utilization has never gone above 3% across all cards.  I have 10 that average $5k limits.  I have a strategy for using my cards.  My Sportsman's Guide statement cuts on the 7th so I will use that card because it is not owed until approximately 50 days.  I usually have a balance from $25 to $75 on each every month except for one where I may put $300 or $400 of use on it.  Always pay in full.  I never SD a card and try to use all 10 every month for some sort of purchase.  But the page says I have too many balances on too many cards.  How can that be if the only balace that remained after payment was on a card that doesn't report to the credit bureaus? 

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FICO 8 penalizes you for having 50% or more of your cards reporting balances, even tiny balances.

To optimize your score let 9 of your cards report at zero, and the other one report at less than 10%.

I don't know what FICO Bankcard 8, which is the model on the Citi site, does.

You can't tell much from that anyway, because it updates so infrequently.