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Established Member
Posts: 14
Registered: ‎12-15-2009
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Credit card balance increase = FICO Score increase?

I received a myFICO alert today saying that my FICO score went up.  It notes that my score went up due to an increase in the balance of one of my credit cards (which were previously all $0).  I would have thought that the increased balance would have had a reverse effect.  Can anyone shine some light on this for me?  Thank you!

 

 

Super Contributor
Posts: 5,759
Registered: ‎01-28-2008
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Re: Credit card balance increase = FICO Score increase?


grc123 wrote:

I received a myFICO alert today saying that my FICO score went up.  It notes that my score went up due to an increase in the balance of one of my credit cards (which were previously all $0).  I would have thought that the increased balance would have had a reverse effect.  Can anyone shine some light on this for me?  Thank you!

 

 


You always want a small balance to report on at least one card. 

Valued Contributor
Posts: 2,682
Registered: ‎07-29-2009
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Re: Credit card balance increase = FICO Score increase?


grc123 wrote:

I received a myFICO alert today saying that my FICO score went up.  It notes that my score went up due to an increase in the balance of one of my credit cards (which were previously all $0).  I would have thought that the increased balance would have had a reverse effect.  Can anyone shine some light on this for me?  Thank you!

 


Sometimes you have to take the Score Watch alert "reasons" with a grain of salt. I've had them tell me that my score went up because of an inquiry. Well...no...that's not how FICO works.

 

Your score can go up for a lot of reasons...your accounts aged, etc. I think if you check your alert it tells you that the reason they give "may" be the reason. Often, it's not.

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Senior Contributor
Posts: 4,923
Registered: ‎04-19-2009
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Re: Credit card balance increase = FICO Score increase?

FICO score also could have increased soley because formerly 0% UTIL became > 0% UTIL. Unless you are a High Achiever FICO does not like 0% UTIL.
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