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Valued Contributor
Duncanrr
Posts: 2,845
Registered: ‎06-08-2012
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How much hit - all cc's reporting zero balance?

[ Edited ]

I know I got a 18 point hit when I had too many accounts with balance after I had a successful PFD remove old CO (the CO had zero balance so when removed it was 1 less account with zero balance).  So that means that if I let one more card report with a zero balance, then I should gain those 18 points back.  The problem is I only have 2 credit cards (one reports with 3% utilization while the other one shows zero balance).  So the question I have is this, what kind of point loss would I see if I let both credit cards report a zero balance?

 

Would the loss be more or less than the 18 points I have lost right now for too many accounts with balance?  Im trying to hold off apping for any cards until I apply for AMEX or NFCU (roommate moves in Oct 1 and I'll be able to join then).

 

Thanks,

 

 

Duncan



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
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Re: How much hit - all cc's reporting zero balance?


Duncanrr wrote:

I know I got a 18 point hit when I had too many accounts with balance after I had a successful PFD remove old CO (the CO had zero balance so when removed it was 1 less account with zero balance).  So that means that if I let one more card report with a zero balance, then I should gain those 18 points back.  The problem is I only have 2 credit cards (one reports with 3% utilization while the other one shows zero balance).  So the question I have is this, what kind of point loss would I see if I let both credit cards report a zero balance?

 

Would the loss be more or less than the 18 points I have lost right now for too many accounts with balance?  Im trying to hold off apping for any cards until I apply for AMEX or NFCU (roommate moves in Oct 1 and I'll be able to join then).

 

Thanks,

 

 

Duncan


This question is pretty much unanswerable.  People can't predict scores with that much accuracy, and it hinges on too many other factors on your reports. 

 

Why do you say you lost the 18 points based solely on too many accounts with balances?  If that was what Scorewatch said, you can't rely on that.  When you did the PFD, the entire tradeline was removed or the tradeline stayed but they removed the CO indication?  Normally they remove the entire tradeline on a PFD, and that would have affected more than just the number of accounts with balances, e.g., it would affect your AAoA.  So it will be very difficult to untangle why precisely you saw an 18 point drop, and then it would be further difficult to predict what would happen if you let your only revolving accounts report $0 balances.

 

In general though, you see a better score with one card reporting a balance and the rest reporting $0.  So I doubt you would see an improvement by letting both report $0.

 

Also, do you have installment loans?  Pretty sure those count in the number of accounts with balances.  So if you have auto loans, student loans, mortgage, etc., those are going to be included and you may still be getting the too many accounts with balances ding.  I have a lot of student loans, so I always have this ding.  It's a minor one in any event.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Valued Contributor
Duncanrr
Posts: 2,845
Registered: ‎06-08-2012
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Re: How much hit - all cc's reporting zero balance?

I had pulled TU report on 7/26 and it was 685. On 7/28 I saw that my USAA daily report had the CO deleted so I pulled my TU report again hoping that I was over 700! Nope lost 18 points. This was the only change. My AAoA is still over 10 years as I have 20 something accounts. Most are student loans that have been consolidated into my two active student loans.

Nothing else had changed and there was 2 days between these TU reports that I pulled from myFICO. I'm confided that this was the reason for drop as the flag for too many accounts with balance is now on my TU score report and wasn't there before.


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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Valued Contributor
Repo-ed
Posts: 2,954
Registered: ‎02-09-2012
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Re: How much hit - all cc's reporting zero balance?

For 3 years I was reporting 0% util, and my scores have only gone up 30-40 pts since Feb, when I finally learned about util% and the importance of removing baddies, of which all but one, have been removed.

 

I guess where I am getting at, at least in my situation, is that 0 util% didn't hurt my scores at all, given the other info on my files (or lack therof)

Valued Contributor
Duncanrr
Posts: 2,845
Registered: ‎06-08-2012
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Re: How much hit - all cc's reporting zero balance?

Thanks for info.  Im not planning on applying for anything for the next couple of months.  Maybe I'll let them report with zero balance this month and see how it goes.  I can have one report with small balance next month.



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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Super Contributor
marty56
Posts: 5,679
Registered: ‎10-06-2007
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Re: How much hit - all cc's reporting zero balance?

Last time I had 0% util, I lost 2 point on EQ and gained 15 points on TU.  Once you can control your util, it is easy to tweek it.  IMHO being able to 100% control your %util makes you an 850 in the credit world. 

09/12/2013 FICO: EQ: 772 EX:813 TU:752
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
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Re: How much hit - all cc's reporting zero balance?

Having that account removed didn't affect your utilization percentage?  Was it your oldest account?  Was that your last major derogatory?  You could have been rebucketed.  I'm not saying that the too many accounts with balances negative wasn't relevant, I'm just saying it's hard to say that it is the only thing that contributed to the score change.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Valued Contributor
Duncanrr
Posts: 2,845
Registered: ‎06-08-2012
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Re: How much hit - all cc's reporting zero balance?

[ Edited ]

Walt_K wrote:

Having that account removed didn't affect your utilization percentage?  Was it your oldest account?  Was that your last major derogatory?  You could have been rebucketed.  I'm not saying that the too many accounts with balances negative wasn't relevant, I'm just saying it's hard to say that it is the only thing that contributed to the score change.


I still have a verizon CO on account, although under dispute flag.  The only other negatives on my account are two SM student loans with a couple lates and my cap1 auto which has a string of 30/60 day lates...its a mess (my only real major headache...with exception of 1 90 day late at SM but I'm trying to GW that off).

 

The CO that I had deleted was reporting zero balance.  My utilization wasnt changed by its removal (still like 5%).  I dont think the CO was my oldest account but it may be.  My oldest account is still listed in the "how lenders see you" section as 15 years 11 months.

 

My TU has since had my Cap1 secured card report to TU with zero balance.  This would probably had kicked it back up, if Im right about too many accounts.  Maybe I'll break down and spend the 15 for new report.  I have an old auto loan that is about to fall off this month and it has zero balance so if it is really the too many accounts with zero balance I need to add another account to my credit report to balance it out.

 

 

EDIT: Well I pulled report.  TU went up 5 points to 672 from 667 with the addition of Cap1 reporting zero balance.  I still have the flag for too many accounts with balance.  My AAoA is still over 10 years.  Its looking like I'll have to add 2 accounts that I let report with zero balance.  Damn FICO game.



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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