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Zero balance tanked Experian 12 points! WHY!?

krysnik44
Established Member

Zero balance tanked Experian 12 points! WHY!?

My Experian score has bounced between 700-741 the past year w/6 HP past 6 months (research wrong on Equifax pulls, Ca popular w/Exp) 3 new ccs in 18 months. I have 100% perfect payment history....zero lates, no charge offs...Util 27% of total credit limit $15k

I'm sick of Target's errors so put card on ice, paying off the last $2 to zero balance 10 days ago. Today MYFICO Experian is at 688!!

The alert says -12 points due to this! I rarely used this stupid card and balance usually < $300 out of $800 SL!

 

Since when is a zero cc balance (not paid off loan) a score sinker? 

I just got a 5th cc, but too soon to appear beyond HP/

Data points-I only have 6 cc's, oldest is $1k Cap One Plat (upgraded to Quicksilver) 4.5 years, 5 accounts 18 months or less  (filed BK 2012, not officially discharged yet all derrogs gone by 2017)

 

 

Message 1 of 5
4 REPLIES 4
SouthJamaica
Super Contributor

Re: Zero balance tanked Experian 12 points! WHY!?


@krysnik44 wrote:

My Experian score has bounced between 700-741 the past year w/6 HP past 6 months (research wrong on Equifax pulls, Ca popular w/Exp) 3 new ccs in 18 months. I have 100% perfect payment history....zero lates, no charge offs...Util 27% of total credit limit $15k

I'm sick of Target's errors so put card on ice, paying off the last $2 to zero balance 10 days ago. Today MYFICO Experian is at 688!!

The alert says -12 points due to this! I rarely used this stupid card and balance usually < $300 out of $800 SL!

 

Since when is a zero cc balance (not paid off loan) a score sinker? 

I just got a 5th cc, but too soon to appear beyond HP/

Data points-I only have 6 cc's, oldest is $1k Cap One Plat (upgraded to Quicksilver) 4.5 years, 5 accounts 18 months or less  (filed BK 2012, not officially discharged yet all derrogs gone by 2017)

 

 


1.  If all 6 of your cards report zero balances you get an "all zero penalty".  Other than that, paying an account to zero would never cause a point drop in any FICO scoring model.

 

2.  The score decrease was not necessarily "due to" the payoff.  The other day I received a TransUnion alert that my bank card balances had increased by $6500. It also noted that my score had increased 4 points.  I can assure you they were not related.

 

MyFICO alerts don't provide reasons for a score change. There are certain events which trigger MyFICO alerts. If there happens to be any difference between your present score at that particular bureau and the previous score reported to you from that bureau, the score change is tacked on to the alert. There is not necessarily any connection at all between the score change and the alert substance.

MyFICO explains this as follows:


Why did my score go up when I got an alert for something negative (or why did my score go down when I got an alert for something positive)?

The short answer: Your FICO® Score may change because of other events not monitored by an alert.

Whenever we send you a credit alert, we also send an updated FICO Score. To ensure you get the most current score, we calculate it based on your entire credit report at that point in time—not just the new information on the alert. This means your new score may reflect other changes that are outside of the things we watch for (see everything we monitor).

Sometimes you may see your score increase when you think it should’ve decreased, and vice-versa, but you’ll always have your most up-to-date and accurate score.
https://support.myfico.com/hc/en-us/articles/360038084633

 


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 2 of 5
krysnik44
Established Member

Re: Zero balance tanked Experian 12 points! WHY!?

I had other alerts and this is one with 688 score was set apart 6 days from any of the other balance alerts, etc I get all the time.

Message 3 of 5
SouthJamaica
Super Contributor

Re: Zero balance tanked Experian 12 points! WHY!?


@krysnik44 wrote:

I had other alerts and this is one with 688 score was set apart 6 days from any of the other balance alerts, etc I get all the time.


It still is not necessarily connected.


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 4 of 5
NYC_Fella
Regular Contributor

Re: Zero balance tanked Experian 12 points! WHY!?


@krysnik44 wrote:

The alert says -12 points due to this! I rarely used this stupid card and balance usually < $300 out of $800 SL!

 

Since when is a zero cc balance (not paid off loan) a score sinker? 

 


If all your cards are reporting zero balances, there is a penalty in the range of 10-20 points. Search for threads on "AZEO".

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