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nickynora

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in one day how did my credit score drop 16 points?
i paid off a credit card of mine, so at the moment i'm not using it, but it's still open. AND my utilization grade dropped from an A to a C because i haven't used my credit card in a month. what gives?

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Best Response Chosen by   Profile Image nickynora
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Scoring systems don't like zero balances. The like us to be in debt and use our debt responsibly, but they penalize us for paying debt off completely. Try keeping a utilization rate between 1% and 20% and you'll almost certainly see your score improve. Sorry, but that's the way it is.

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I had a score of 718 on Saturday, January 25, 2014 with zero negative marks and $36 on my CapitalOne card (paid in full) but used $36 before it was reported to the credit bureau.  I was approved for a new credit card also on Saturday, January 25, 2014 with my score still showing 718.

When I checked it an hour ago on Sunday, January 26, 2014 my score dropped 16 points and my Vantage dropped 6 points.

I'm confused since I have not received the new card and no payment due along with my CapitalOne older card is not due until February 11, 2014. 

Why would my score drop at all let alone that excessive.

Thank You,

Top Contributor
713 Contributions
2572 People Helped

Helpful to 2 out of 3 people

Scoring systems don't like zero balances. The like us to be in debt and use our debt responsibly, but they penalize us for paying debt off completely. Try keeping a utilization rate between 1% and 20% and you'll almost certainly see your score improve. Sorry, but that's the way it is.

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nickynora

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Helpful to 1 out of 2 people

Talk about a slap in the face for doing the right thing.

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