HELP! I'm "On Time" but My Score Dropped...Why?

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IWant850
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HELP! I'm "On Time" but My Score Dropped...Why?

Postby IWant850 » Mon Sep 12, 2016 3:14 pm

Hi...

Please help Me understand what I'm doing wrong here...?

I have been Working on Building My Credit...and I have 3 Cards.

Capital One - $901 Limit
Bank Issued (Secured) Master Card - $2500 Limit
Chase Freedom Unlimited - $6500 Limit

I have Never been Late on ANY of these Cards...I use all of these
Cards throughout the Month and I always Pay them "On Time"
and to a Zero Balance.

I have No New Inquiries in the past 90-120 Days, yet
this Month, My Score with Experian Dropped 23 Points.

My Current Scores are:

TU - 699
EQ - 716
EX - 638 (Down from 661...UGH!)

Can You help Me understand "Why" this happened
and What I can do to rebound from this??

All Replies are Greatly Appreciated.

Thank You!


Tubpbs
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Re: HELP! I'm "On Time" but My Score Dropped...Why?

Postby Tubpbs » Mon Sep 12, 2016 7:58 pm

Do your balances report as $0 or more than $0?

All balances reporting at $0 for whatever reason is considered a negative. That could be the issue.
Amex - BCP, Platinum, Business Gold
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Citi - DC, Prestige
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CarefulBuilder14
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Re: HELP! I'm "On Time" but My Score Dropped...Why?

Postby CarefulBuilder14 » Tue Sep 13, 2016 12:21 am

Tubpbs wrote:Do your balances report as $0 or more than $0?

All balances reporting at $0 for whatever reason is considered a negative. That could be the issue.

Or the cards could be reporting high balances. OP could be paying on time and in full and yet still have high utilization factoring into the scores if the banks are only reporting the new statement balances each month.
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Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red

Tubpbs
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Re: HELP! I'm "On Time" but My Score Dropped...Why?

Postby Tubpbs » Tue Sep 13, 2016 5:17 am

CarefulBuilder14 wrote:
Tubpbs wrote:Do your balances report as $0 or more than $0?

All balances reporting at $0 for whatever reason is considered a negative. That could be the issue.

Or the cards could be reporting high balances. OP could be paying on time and in full and yet still have high utilization factoring into the scores if the banks are only reporting the new statement balances each month.


That is also very possible. Or he could have 17 new inquiries that he didn't think were particularly relevant.

OP - where are you getting your scores from? The source will usually provide reasons for your current scores and those are going to be solid explanations for the change. Also, consider the general make up of a FICO score - the several components that are weighted together to make your score. Think of what has changed within those factors over the last month or two other than your balances on your cards. Also think about what factors overall you need work on and start pushing towards resolving any issues and controlling any of those factors to the best of your ability.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

takeshi
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Re: HELP! I'm "On Time" but My Score Dropped...Why?

Postby takeshi » Tue Sep 13, 2016 7:19 am

IWant850 wrote:Can You help Me understand "Why" this happened

How did your reports change? There's much more to scoring than just on time payments and inquiries.
http://www.myfico.com/crediteducation/w ... score.aspx

Any change in score is due to a change in report data. We don't have access to your reports. You need to give us that info, If I had to guess without knowing I'd guess an increase in reported revolving utilization or all cards reporting 0 balances as suggested above.

IWant850 wrote:and What I can do to rebound from this??

If it is due to revolving utilization then you can address that. However, there's no long term gain from improving revolving utilization as it is only determined based on your current balances and limits as indicated in your reports. You'd need to look elsewhere to determine why your scores are where they are and how to make progress in the long run.

IWant850 wrote:I always Pay them "On Time"
and to a Zero Balance.

How, exactly? If you're paying them to 0 after they report then they are still reporting balances. You'd have to pay them prior to report date to have them report 0 balances though, as stated above, there is a hit for having all your revolving accounts report 0 balances.

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Re: HELP! I'm "On Time" but My Score Dropped...Why?

Postby Tubpbs » Tue Sep 13, 2016 6:45 pm

takeshi wrote:
IWant850 wrote:Can You help Me understand "Why" this happened

How did your reports change? There's much more to scoring than just on time payments and inquiries.
http://www.myfico.com/crediteducation/w ... score.aspx

Any change in score is due to a change in report data. We don't have access to your reports. You need to give us that info, If I had to guess without knowing I'd guess an increase in reported revolving utilization or all cards reporting 0 balances as suggested above.

IWant850 wrote:and What I can do to rebound from this??

If it is due to revolving utilization then you can address that. However, there's no long term gain from improving revolving utilization as it is only determined based on your current balances and limits as indicated in your reports. You'd need to look elsewhere to determine why your scores are where they are and how to make progress in the long run.

IWant850 wrote:I always Pay them "On Time"
and to a Zero Balance.

How, exactly? If you're paying them to 0 after they report then they are still reporting balances. You'd have to pay them prior to report date to have them report 0 balances though, as stated above, there is a hit for having all your revolving accounts report 0 balances.


FYI - I know this has been covered by myself and others, but I was recently preparing for a couple applications and was attempting to manipulate my scores by getting my utilization all the way down to almost absolutely nothing and when some statement dates crossed paths, I had $0 on all cards for a few days. I was absolutely SHOCKED by the drop I took from it. As soon as some balance reported my scores recovered immediately but I really was very surprised at the negative impact they employed for the $0 balance reporting on all accounts. (I also still don't particularly understand why the $0 balance is a rea negative - I suppose you're not really using the credit you've been issued which is a form of misuse).
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
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Vattené
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Re: HELP! I'm "On Time" but My Score Dropped...Why?

Postby Vattené » Wed Sep 14, 2016 5:01 pm

I understand in theory why it would have a negative impact, particularly since it is a factor with no memory to it. 1% shows you are using your card, but indicates more responsible use than if it were 99% (all else being equal, of course). 0% doesn't tell you anything about how you manage your credit. I wouldn't consider it misuse, just an absence of evidence that you're managing credit responsibly. Like someone with no credit history at all yet, no data = uncertainty = risk.

I've never tested it (on purpose or by accident) to see what impact it actually had though. I'm surprised it makes that much of a difference. It's just one thing changing, and it's not like a collections appearing or something that's pretty obviously a major red flag. Now I'm tempted to try it just to see how far it drops!
-Vattené
FICO-8:
EX - 827 (4/17) | TU - 812 (4/17)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

Tubpbs
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Re: HELP! I'm "On Time" but My Score Dropped...Why?

Postby Tubpbs » Wed Sep 14, 2016 5:52 pm

Vattené wrote:I understand in theory why it would have a negative impact, particularly since it is a factor with no memory to it. 1% shows you are using your card, but indicates more responsible use than if it were 99% (all else being equal, of course). 0% doesn't tell you anything about how you manage your credit. I wouldn't consider it misuse, just an absence of evidence that you're managing credit responsibly. Like someone with no credit history at all yet, no data = uncertainty = risk.

I've never tested it (on purpose or by accident) to see what impact it actually had though. I'm surprised it makes that much of a difference. It's just one thing changing, and it's not like a collections appearing or something that's pretty obviously a major red flag. Now I'm tempted to try it just to see how far it drops!


I agree with what you said about it providing a lack of information and that likely being at least part of the cause - that makes perfect sense.

For my case, it is possible that it wasn't the only factor that caused the drop, but I'm fairly certain nothing changed on my report other than that. My scored dropped 13 points, BUT went up 26 once everything reported correctly again. So call in somewhere in between those two numbers I guess. It seemed bigger at the time, but doesn't seem as big looking back... But I also think all score changes are relevant to ones current score (i.e. - a drop of 20 points when your score is 650 does not have the same meaning as a 20 point drop when your score is 800)
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

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Vattené
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Re: HELP! I'm "On Time" but My Score Dropped...Why?

Postby Vattené » Thu Sep 15, 2016 3:15 pm

I was imagining a bigger drop, but you're absolutely right that the real difference depends on the general health of your credit. If you're sitting anywhere around 800 that drop is effectively zero.
-Vattené
FICO-8:
EX - 827 (4/17) | TU - 812 (4/17)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



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