Rebuilding Low Utilization CC No Score Change

[Anonymous]

Hi Everyone, I have a quick question, I Hope I am posting in the correct forum.  For the past year I have been working vigorously on my credit score.  I started high 500s, dropped low 500s..  Now back in 611 Tu & 629 EQ  through my fico.  I opened a CC in June of 2010.  I have paid on time every month.  I was previously carrying a high utilization so I paid it down to 3% last month which boosted my scores from Tu 585-611 & Eq 595-629.  So this month I apparently have a 300 balance but went to 301 by accident but paid it down to a $3 balance at the end of the month.  The CC posted to my report a $3 balance but high balance of 300 was 301.  My Fico had projected a 20 point increase on both scores if I pay down $5 of the past balance.  So, I did, but when I checked my scores today my utilization has dropped from 3 to 1%  but no score change?!?!? What happened?  Possibly from the $1 over?  I'm puzzled and a bit disappointed.  Ty

[RobertEG]

Welcome!

My basic reaction to your post is that the forest is more important than the trees.

With your current scores, I suspect that you have major derogs in payment history that are having a much higher impact on your score than current % util of an indiv card.

Before any actual credit scoring is done by FICO, they must first determine which of their dozen or so scoring algorithms they will use as the bsasis for their actual scoring.

Payment history is the primary credit scoriing emphasis in FICO scoring, so while you still have prior multiple monthly derogs, or prior major derogs (e.g., 60+ lates, a CO, a CA, or a public record), you are going to be scored under a scoring algorithm that puts more emphasis on that than it does on current % util.

Many on here call those scoring "buckets," and multiple delinquencies, or a major derog, can put you into aq "dirty" vs a "clean" scoring category, or "bucket.".  The less emphasis on % util.

Once your file becomes "clean," then improvements in the next-most important scoring category, that being util of credit, will then carry more impact.

I would suspect, without knowing the details of your payment history, that more benefit may come, at this time, from cleaning up that cagtegory of your CR than dealing with the lesser significance of current monthly % utils.

[llsnmerriman]

Ty for your response.  I do have derogs but they are from almost 3 yrs ago & paid all last year in Feb/early March.  One from a past collection posted a new Collection Agency in Feb of last yr I paid a week later but they never removed.  That is the newest but it orignated from 07.  NO BK  NO judgements.  All Paid.   I have 16 accounts in good standing, 2 installment loans current no lates opened in 09 & 1 CC from June 2010 No lates. 

[RobertEG]

Bingo!

I would first address those old derogs, with a string of GW letters.

I see that as the biggest thing you can do NOW  for your credit score.  You need their deletion.

Payment of a debt never, in and of itself, requires the deletion of the drogs that were reported prior to payment, and thus dont improve you payment history scoring.

Focus on current % util is always important, but it is the single FICO category that has NO historical memory in scoring.

20% util last month is erased by, for example, less than 10% util the very  next month.

Old derogs dont work that way.

So once you do all that you can to eliminate the more dastardly impact of those old derogs, the more you can impact your monthly score by focus on monthly % util.

I dont see your CR now as putting you in that position.

[llsnmerriman]

Ty for your response.  I have tried GW letters but with no luck!