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Question By
mookie5050

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why did my equifax score go down when i pay everything on time and even pay more than the minimum.
Equifax Went down 5 points. I pay everything on time. I dont have any outstanding bills. The only thing I've done is used my WalMart credit card almost up to the limit but not before paying it down almost all the way first. I have not gotten my statement yet. I pay before the statement comes.

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Don't pay before the statement comes!!!  That usually means you are paying before the closing date and doing so messes up the utilization factor in the credit score.  Wait until the statement comes,, then pay in full. 

A five point drop in score is not a big deal.  Scores will either stay the same for long periods or fluctuate a few points either way for no apparent reason.  When the change is in the 'teens, that's the time to begin checkinig what may have happened.

Reply by
giovovet

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I checked with my financial expert,and he said to pay the min. due for two months,then the third month pay it all

this will help your credit score.

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While Payment History is the biggest factor and payinb on time helps it is not the only factor that affect your score by a long shot.

The minimum is irrelevant for scoring.  All the minimum defines is what you need to pay to keep the account current.  For scoring purposes your reported revolving utilization is what matters.

5 point is a negligible change.  Variations in reovlving utilization from month to month can easily cause score changes even larger than 5 points.  If you're going to worry over score changes set a threshold of at least 20 points.

Paying before the statement end is not an issue.  Whatever your balance is when the statement is generated is the balance reported to the CRA's and used in determining your revolving utilization.  You want your revolving utilization to be as low as possible as long as you're not report zero balances on all of your revolving accounts.

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Pharkus

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WRONG ANSWER:  Utilization is the balance on your card WHEN REPORTED to credit bureaus,  not balance on statement.   Most report a week or more BEFORE billing date.   So if you almost max out card and then pay entire balance of statement,  your utilization will be almost 100% at report date.

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Because Equifax loves to deduct points but hates to give points, I often woeder if they are paid to do this to suck more niter st out f us from the big banks

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I have been to ,any sites concerning credit woes of consumers hard working bill paying consumers, it is a joke how the credit bureaus treat us, and we shouldn't have to rack our brain to figure out how to get and keep a good score,and the Rico site Rico scores guess what they are fake scores also told to me by my mortgage broker, it is all a big racket, and the best thing to do is to ignore all of these score keep maybe 2 cards and check back in a year we give these credit bureaus way too mch attention, while they play games, ever notices how they get a hard inquiry right away but f you lower your utilization,it takes them forever to reflect it n your score. It is all a bunch of bull crap

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stgcret

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BINGO!  Used your WM card to almost max.

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