Question on FICO score

[Sigarms]

This is driving me bat crap crazy....

If you average about 3-4K a month in credit card bills, and they are always paid off on time, but then for a couple of months have a 10K credit card bill (likewise paid off in full before due), would that lower your FICO score?

For my job, I have submit expenses (and get paid for them in a timely fashion), and recently for work I've been having to spend a lot of money the last couple of months for training classes, hotel and travel that has increased my spending on MY credit card.

Only thing I can think of that is lowering my credit score is percentage of charges on credit card increasing vs income.

In my mind, if the card it paid in full when it's due, the better.

What I'm wondering is giving up the 2% I collect in "cash back" using my own credit card (yes, even though in most cases I'm spending a minimum of 3% to use the card) and see if I can get a company credit card that isn't in my name.

NOTHING else has changed on our end per our finances. We owe no one any money and actually have saved money with some investments.

I was just checking a balance tonight before we leave on vacation, and just decided to click onto my FICO score that my card company offers and I see it actually went down again, and no clue as to why.

Thanks!

 

[Midniteoyl]

Its probably the sudden increase over the norm. That sets a red flag for a bit. It should correct itself in a few months if there are no more sudden increases.

 

[WM75Guy]

We are in the same situation. It is because the balance reported by the lender after the closing date went up. They just compare one month to the next. The credit reporting agencies do not know that the balance has been paid each month in full, only that the balance changed and you are current on payments. As was said, if the balance goes down the score goes back up.

 

[japody]

I have had situations where my monthly balanced increased significantly and I paid them off each month. It did not affect my FICO score.

 

[bdhsfz6]

The answer is yes.

I always pay my balance in full each month and occasionally carry a large one. Every time I do, my FICO score drops 30 or more points, depending on the amount.

I questioned my bank about this and was told it is standard practice.

 

[grsthegreat]

Yup, mine does the same thing. A few times i purchased about 48k worth of generators, but paid it off before fees could be charged. Did this a few times, and this always lowered my score. However within maybe 6 months the scores went back to where they were.

I was also told that people that pay off everything and never hold an active credit balances will lower the fico scores. Credit card companies call people like me that have $0 in credit card running balances ….deadbeats.

They make nothing on our balances except fees charged during transaction.

In 2017 i purchased a tundra using toyota finance because they would not accept a credit card for full payment, and i didnt want to go back home and get a check. I paid for truck in full right after they sent me the payment book. My credit score jumped to nearly 830. Highest its ever been. Since then, its hovered around 815 ish. I still occasionally build up a large charge month, but always pay it before finance charges kick in.

I think the credit card companies hate me. Capital one actually wrote to me telling me im not using enough of my available balance, so decreased my balance and increased my interest rate. Dont care, dont pay interest. But it sucks none the less. They ping you if you handle credit wisely.

 

[Tomtint]

FICO looks at numerous things like the balance of your card and the available credit left on it. The more debt and less available, the lower your score. Your score can drop a lot very quick..and take a few months to recover. It's a scam. Also, If you are applying for credit.. Car loan or other.. Each inquiry can ding your score. Car dealers are famous for taking your credit app and sending it to 7/10 lenders to shop for the best buy rate so they can then step on it and make points on the back end. .. Each of those inquiries can ding your score as much as 10 points depending on the amount requested.

 

[Sprinkler Fitter]

This is driving me bat crap crazy....

If you average about 3-4K a month in credit card bills, and they are always paid off on time, but then for a couple of months have a 10K credit card bill (likewise paid off in full before due), would that lower your FICO score?

For my job, I have submit expenses (and get paid for them in a timely fashion), and recently for work I've been having to spend a lot of money the last couple of months for training classes, hotel and travel that has increased my spending on MY credit card.

Only thing I can think of that is lowering my credit score is percentage of charges on credit card increasing vs income.

In my mind, if the card it paid in full when it's due, the better.

What I'm wondering is giving up the 2% I collect in "cash back" using my own credit card (yes, even though in most cases I'm spending a minimum of 3% to use the card) and see if I can get a company credit card that isn't in my name.

NOTHING else has changed on our end per our finances. We owe no one any money and actually have saved money with some investments.

I was just checking a balance tonight before we leave on vacation, and just decided to click onto my FICO score that my card company offers and I see it actually went down again, and no clue as to why.

Thanks!

How are you spending 3% on most purchases?

 

[garry1p]

Happens to me. I checked and they say its the highest amount of debt during that month, even if you have a zero balance at the end of the month.
It just goes up and down so I quit worrying about it so far it hasn't gone below 800.

I do pay it off every month but never had the card people complain about usage or zero balance.

 

[ultrarunner]

Percent of credit used?

A friend had a 40k limit credit card from his business days and told me after a year he closed it because he was retired and had other cards.

Closing his 40k limit card with zero balance dropped his score quite a bit.