Hi. I enrolled in myfico credit monitoring service about a month ago that gives your updated scores and issues alerts whenever a score changing event occurs. I have been paying a substantial amount each month trying to get my utilization down as high utilization was cited as a factor in my scores. Along with slow pays from years ago that should drop off in the next year or two. So I figured that attacking my utilization for now was my best bet. I just got an alert today of an updated balance on a store credit card. The overall utilization went down and I got a 2 point DROP on my equifax as a result. I thought that reducing my balance on that card by close to 10% would either raise my score or leave it unchanged. My score with equifax dropped from 707 to 705 as a result of this single change. I don't see how this could be. I thought lower utilization was supposed to be a good thing. I have more cards that will be reporting lower or no balances in the next week or so, lowering my overall utilization from 42% to in the 28% range with the highest balance card of all reporting 41%. Has anyone else seen this happen? Got me scratching my head. I am planning on buying a second auto next month and this has me worried as my auto scores are all on that borderline edge of getting into a prime category. I was hoping that lowering my utilization might bump me a few points and help out. Is it possible that paying down revolving balances could actually drop your score? I don't see how this could be.
