why would paying off all my accounts cause my credit score to go down 10 points?

[cjs]

It is more idle interest - my score is still over 770, but why would paying off what had been approximately 4,000 across two cards (total limit 50,000 so was well within desired utilization) cause my score to go down 10 points?

[JcT21]

apparently the fico gods like to see credit card activity.    so having a balance, even a small one is "ideal" for score optimization.  

my score dropped 26 points this morning for paying off my credit cards.    experian says not having any credit card activity is the reason.   sad, sad day.  i just about fell out of my chair...almost in tears..

mr. fico will see utilization asap.  even if its a tank of gas.  he will see something!

[Scupra]

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@JcT21 wrote:

apparently the fico gods like to see credit card activity.    so having a balance, even a small one is "ideal" for score optimization.  

my score dropped 26 points this morning for paying off my credit cards.    experian says not having any credit card activity is the reason.   sad, sad day.  i just about fell out of my chair...almost in tears..

mr. fico will see utilization asap.  even if its a tank of gas.  he will see something!

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This is pretty much right! To the FICO algorithm, if you have all cards at $0 it see's this as you not using credit. Just let a small balance report and pay it off after the statement cuts to avoid interest.

FICO has no memory so don't get all worked up. Letting a balance report will bring your scores right back