score dropping while carrying no balances whats up!

[sam3552]

i don't get it my score has gone from a 767 to a 737 in 3 months yet i pay my balances of every month, is anyone else seeing this

[Anonymous]

Do not pay ALL accounts down to $0. Less than half of your accounts (2 out of 5 or whatever you have) should have a very small balance (7% or so).

[sam3552]

really ? i always thought it best to pay it off every month and avoid the finace charge so thats what i have been doing and every month seems like i take a 10 point hit when the balances show up on the cards but dont go back up when paid. i was hoping for an 800 score by now, arrgghhhh!!!!

[Anonymous]

Just to clarify. You should pay off everything before it is due. So you don't have to pay fees. But you shouldn't pay all accounts before they report (typically the statement date). Thus, pay down to ~5% shortly before the statement cuts (that amount will then be reported to the bureaus). Then pay the remaining 5% before the payment is due. So there are no costs involved for you.

Message Edited by Physicist on 09-21-2008 10:23 PM

[sam3552]

ahh i see what you are saying, i have been just paying the balances off the staements.

[Madison]

It is crazy to have to carry a balance of 2-7% to get a higher credit score. If you use your cards and PIF each month, that shouldn't lower your credit score. Americans shouldn't have to pay extra interest to max out your credit scores. It is a great example of the FICO scam.

[haulingthescoreup]

No need to carry a balance or pay interest. Just pick one of your accounts, allow $10 to report, and then pay it off, long before the due date.

No interest due or paid this way, but you'll have an account showing a balance, which for many people (not all) helps their score.

[Miner]

I always PIF every month, but every statement that is generated shows a balance since I'm constantly using my cards to pay for most things.  Thus I never pay any interest but always have a balance around $1000 showing up on my credit reports.

[haulingthescoreup]

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@Miner wrote:

I always PIF every month, but every statement that is generated shows a balance since I'm constantly using my cards to pay for most things.  Thus I never pay any interest but always have a balance around $1000 showing up on my credit reports.

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If you want lower balances (or $0) to report on some accounts, go in and pay those online 4-5 days before the statement date.

If you ever need some points for a big app, this is the simplest way, although it still takes a while for everything to percolate through and appear on your reports, so that your scores can be affected.

[marty56]

I lost point for 0% util.  I had $10 report on 1 account and got them back.  I didnt pay interest since I PIF by the due date.  Lucky FICO rounds util up so $1 is the same as $200.

Some CCCs are slow to report.  GE Moneybank is very bad.  It is almost impossible to PIF by the due date and have it report a balance with paying some interest.