Credit Utilization @ 0%

[Anonymous]

Credit Utilization @ 0% and credit scores drops, why is this happening? I used my cards all the time and pay in full each month.

[Anonymous]

The FICO algorithm that determines your score doesn't see you using any credit unless at least one of your cards reports a balance. The general consensus is for best results, let one card report a small balance(under 10 percent of available credit).

So if you have a small balance reporting, the algorithm sees you using credit responsibly and gives a little boost. If you have no balance reporting, the algorithm doesn't see you using credit, so no boost from responsible use of credit.

[Anonymous]

Thanks for your reply, would it be okay if I use all three of my cards and keep them @ 10%?

[Anonymous]

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@Anonymous wrote:

@Anonymous for your reply, would it be okay if I use all three of my cards and keep them @ 10%?

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The best results reported seem to be one card reporting less than 10%. What many do is use all their cards, but pay them all down before the *statement date*(different than the due date), except for one. That one you let report under 10%, and pay it off by the due date. This is what I personally use and you'll find countless people here swearing by this method. I've gotten good results doing this, although I aim for about 1% utilization. If you have multiple cards reporting, especially if it's all of the cards you have, you're not going to get optimal scores from that.

[Anonymous]

So pay 2 of my cards off and let one report under 10 %? I been trying to get my credit where it needs to be to buy a home. It keeps going down.

Let me know if that is the best method as you stated. So it would hurt me having the 3 cards reporting under 10%? This is so confusing. Thanks in advance.

[Anonymous]

For the best results, just keep 1 of the 3 under 10% and the other two at 0%

[Anonymous]

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@Anonymous wrote:

@Anonymous for your reply, would it be okay if I use all three of my cards and keep them @ 10%?

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Use all three as much as you like, pay in full two of them, let the third one carry a small balance.

[Anonymous]

5% reporting seems to be my magical number. Tried 1%, small jump, 5% gave 20pts.  Rumor mill states 1-7% but each profile is different. 

Got nothing but time to play around with my UTL.

[Anonymous]

On just 1 card?

[Anonymous]

Yes.  Oui. Si. Dui.