Yes unfortunately that is correct you get penalized by having a zero balance across all your tradelines. Trust me it makes no sense to me either but the good news is if you let one CC report a small balance going forward then pay it off before the due date you should get those points back.
@hodosh wrote:My FICO went down 10pts after I paid off all my loans, credit cards along with my car. I have literally no debt now except for my mortgage.
So I get penalized for paying off things??? Don't get that one at all.
Sounds like you just met the "all zero penalty", which happens when all your revolving accounts report zero balances. You can get the points back by letting one account report a small balance before you pay it off.
@hodosh wrote:I can do that, do have a card with 0% interest x 15mos. I'll just use it for gas....Thanks for your input. I did post this to the other person who responded:
Interesting bit of info for ya all.......my son just graduated from med school with $320,000 in fed student loans.....his score is 15pts better than mine now. Speaking of making "no sense" one cannot work in med school so 4yrs of not working, plus loan is on deferrment!!! Wonder if I got a $320,000 loan maybe I would get some or more of the pts back!!! LOL
Doesn't matter about the interest. You don't need to carry a balance. Just need to let one report. Assuming your card is one where the statement balance is the reported balance, you just need to let $10 or $20 show up on the statement, and then pay it right off.
You've experienced a minor reprimand from the FICO overlords for being a bad debt slave!🤪
@hodosh wrote:I can do that, do have a card with 0% interest x 15mos. I'll just use it for gas....Thanks for your input. I did post this to the other person who responded:
Interesting bit of info for ya all.......my son just graduated from med school with $320,000 in fed student loans.....his score is 15pts better than mine now. Speaking of making "no sense" one cannot work in med school so 4yrs of not working, plus loan is on deferrment!!! Wonder if I got a $320,000 loan maybe I would get some or more of the pts back!!! LOL
Welcome @hodosh
You can use your card/s all you want. More use. Better chance for a CLI. Doesnt matter what the interest rate is. Pay it down before the statement date to say $20. You'll get your bill for $20. Pay it before the due date. Easy.
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