My credit dropped not that much but it goes up and down. This is the worst cause if you want to pay something its like is it even worth it. I applied for a mortgage and was denied because of the1% rule stuff. I did get a loan with my bank only because I showed proof of statement from idr, the mortgage people not so convincing, damn if you damn if you dont

Hi Deborah,

As noted in the possible negative consequences section, it is possible that the $0 payments could conceivably hurt your credit score, but the impact should likely be minimal.

Are there any other changes to your credit report that could account for the score change? A missed payment, new account, or even hard inquiry could also explain a drop in score.

One other possibility is that you are seeing a score change due to FICO changing the scoring system: https://www.cnbc.com/2020/01/23/fico-10-credit-score-changes.html

I too had the same problem of my credit score going down because of my 0 payments. do you know what can be done.

The lenders only look at your outstanding balance and apply 1% to any credit you try to get so in short doesn’t make any difference if you pay more or not on a zero monthly payment it will hurt your credit score because they only look at the outstanding balance

Wrong! It does lower the score. Lenders look at outstanding balance amounts only

Watch the outstanding balance. 1% os always applied to debt to income ratio

If you can even get credit now! the impact is huge and I am so upset cuz mine is 31 years old and I have come a long ways and I deserve more than what I able to get

Absolutely does hurt you financially. The lenders apply 1% of the outstanding balance against debt to income ratio. I cant get anything that needs a loan. !

Lauren what did you do because the same thing happened to me!!