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I am at my wits end, what is going on with these credit bureaus?


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I have been trying to figure out what the credit bureaus want to make them happy.  Seems if I have a small balance on my CC, they ding me, I pay if off, they ding me.  I can't win no matter what I do.

 

As a rule, I pay off every credit card, every month.  I always thought paying off the balances was best.  Then I found out that if I didn't leave a balance, it was as if the card wasn't used.  In fact, after not using one for a few months, they said something about the card being dormant?

 

1.  Transunion dropped my score 6 points due to a $22 balance on one card

2.  Equifax dropped by score 15 points for the same $22 balance

 

After seeing the credit hits I took for leaving small ($6-25) dollar amounts on the cards so they would know they are active, I got really whacked today.

 

Received a notice from Experian I got a new score.   728 down to 705.  So I logged in to see what changed....they noted my car loan balance was smaller, as was my mortgage.  They showed one positive thing after another, and then came the slap to the face.  They said all of a sudden four of the eight accounts showed no balance...duh.....they showed no balance because I paid them off because I got tired of having my credit hurt for having 1% of my credit used.

 

So....paying off four cards from their under 1% balance was justification for dropping my score 23 points?  Earlier in the year I took another 23 point drop on Experian, no explanation.  Not long ago my Experian was 821, now 705.  116 point drop and all I have done is made all my payments, paid off my CC cards monthly, no new credit, nothing...

 

All of the accounts show "exceptional" payment history.  No late payments forever, no new inquiries, nothing but being a good boy.

 

So...now Experian is at 705, Equifax 780, Transunion 741.

 

Please help me understand how Experian can swing 116 points for doing nothing bad.  As an aside, I typically charge $5-15K monthly, and pay it off.  I use a couple of my cards for business purchases and then pay them off before they are due.

 

Thanks

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I have been trying to figure out what the credit bureaus want to make them happy.  Seems if I have a small balance on my CC, they ding me, I pay if off, they ding me.  I can't win no matter what I do.
 
As a rule, I pay off every credit card, every month.  I always thought paying off the balances was best.  Then I found out that if I didn't leave a balance, it was as if the card wasn't used.  In fact, after not using one for a few months, they said something about the card being dormant?
 
1.  Transunion dropped my score 6 points due to a $22 balance on one card
2.  Equifax dropped by score 15 points for the same $22 balance
 
After seeing the credit hits I took for leaving small ($6-25) dollar amounts on the cards so they would know they are active, I got really whacked today.
 
Received a notice from Experian I got a new score.   728 down to 705.  So I logged in to see what changed....they noted my car loan balance was smaller, as was my mortgage.  They showed one positive thing after another, and then came the slap to the face.  They said all of a sudden four of the eight accounts showed no balance...duh.....they showed no balance because I paid them off because I got tired of having my credit hurt for having 1% of my credit used.
 
So....paying off four cards from their under 1% balance was justification for dropping my score 23 points?  Earlier in the year I took another 23 point drop on Experian, no explanation.  Not long ago my Experian was 821, now 705.  116 point drop and all I have done is made all my payments, paid off my CC cards monthly, no new credit, nothing...
 
All of the accounts show "exceptional" payment history.  No late payments forever, no new inquiries, nothing but being a good boy.
 
So...now Experian is at 705, Equifax 780, Transunion 741.
 
Please help me understand how Experian can swing 116 points for doing nothing bad.  As an aside, I typically charge $5-15K monthly, and pay it off.  I use a couple of my cards for business purchases and then pay them off before they are due.
 
Thanks


I suspect you are not comparing apples to apples. It's virtually impossible to drop 116 points just by paying your credit cards on time and no other changes to your credit report. Is it possible you are comparing FICO Score to Vantage? Or different versions of FICO?

If you search CB, you might find reference to what we call the "$2 Trick". On clean reports, it's best to let only one card report a balance of about $3. That means you pay everything off except for a $3 balance on one card a few days before statement date. That should give you maybe a dozen points more than if all your cards report $0 balance.


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5 hours ago, PotO said:

116 point drop and all I have done is made all my payments, paid off my CC cards monthly, no new credit, nothing...

I agree with PotO - something else happened here.  A sudden 100+ point drop points to a new collection be placed, I really can't think of anything else that would blindside you that way.  a gradual 100+ point drop points to multiple 30/60/90 day lates.

 

Are you looking at Experian FICO scores at usa.experian.com/member/overview?  If so, click on the Credit Usage / Total Debt / Open Accounts / Inquiries box under your credit score.  This will take you to a page with your previous reports available from a drop-down menu in the upper right corner of the page.

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Credit bureaus have nothing to do with your score calculation.  They simply provide data that is used by a different entity (your lender or proposed lender or shiny bauble posing as a credit monitoring service) and then it is scored on whichever model is being used.  This could be one of the 30+ flavors of Fair Isaac modeling or it could be one of the Vantage sKores.  That you are referencing EXP suggests this is not a true Fair Isaac score since FICO does not ding for only using 1% of the credit available to the consumer.  Having four of eight accounts WITH a balance, no matter the amount, WILL hurt scores.

 

Also, remember that ONLY one card should reflect a balance.  When you let multiple cards report balances, you WILL see a ding of some sort because of the fact that more of the models tend to look at ratio of cards to cards with a balance.  Your lender knows if you were using the card.  And it is not necessary to use them every month.  Once every four to six months keeps most of them content and not ready to whack a limit...

 

I've got a thread around here from a few months (or more) back detailing my drop of 25 (850 to 825) for a new account and everything having been zero save for my AXP Plat.  I wanted to see if it would count for AZEO purposes and confirmed that it did not.  I let something report a few dollars and gained back ~15 points of the loss.  There was no effective difference between a two dollar balance and a $4K balance since I toyed with that as well during the past month (obviously the card had a limit where $4K did not place it over the 20% utilization range). 

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On 9/15/2021 at 10:09 AM, Testshoot said:

1.  Transunion dropped my score 6 points due to a $22 balance on one card

2.  Equifax dropped by score 15 points for the same $22 balance

 

Did the Kredit Carma feed this to you?

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