Score drops as utilization drops

[Reighn9]

I have lowered my overall utilization from 70% to 23% and my score from 716(Aug 2012) to 753 (June 2014)back to 693(now) Events-bought new car August 2012, June 2014 hail storm trashed car, bought new car July2014. I have 7 inquiries. After the hail storm I consolodated the balances of seeral of my cards onto a new one, most cards are below 10% but my car loan is still new again as is has been since 2012.  Here are the reasons for score I always get:  # 1  You've made heavy use of your available revolving credit. Your FICO ® Score evaluates your total revolving credit balances in relation to your total credit limits on those accounts. In your case, this ratio of balances to credit limits is too high. or Proportion of balances to credt limits is too high on bank / revolving accounts  #2  The remaining balance on your installment loans is too high.  Your FICO ® Score weighs the balances of your installment loans such as auto loans against the original loan amounts. In general, when you first obtain an installment loan your balance is high, and as you pay this loan down, the balance decreases. This factor will have less of a negative impact on your FICO ® Score as you pay down your installment loans and the total balance decreases. 

Now here is the #2 reason which was added today causing the latest score drop-Lack of recent installment loan information  Current credit activity is necessary for accurately assessing a Consumer's future credit risk. Consumers who have not used this type of credit recently have limited information available that demonstrates their ability to manage credit.

What I forgot to mention was in August 2012 when I bought that car the #1 reason for score was serious deliquency, etc-that hit the 7 year mark in September and my score started jumping. Since then I've been getting these same 2 reasons  What gives? And the new one is confusing, the loan is being reported.

[StartingOver10]

Are you looking at the FICO score reasons or score reasons from another source?

How many cards do you have and how many are reporting zero balance?

Utilization is a huge part of the scoring formula. Utilization is measured as total debt against total credit lines (on revolving lines) and also individual debt on individual lines. Having zero balances helps your score. You best optimize your score by having all revolving report zero except for one cc and have it's balance less than 10% of the credit line.

[QFJFKSYD]

Sometimes the scoring doesn't make sense.

I recently paid my util from 65% to 41% and have 3 cards now reporting zero that weren't (one was maxed) and my score went from 715 to 713 when those changes hit the report per myfico.  

I assume in a month or so when they realize the lower util is the new norm (will be even lower) it will jump up again.

Just sometimes some oddities we all deal with.  Give it some time.  IMHO

[Reighn9]

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@StartingOver10 wrote:

Are you looking at the FICO score reasons or score reasons from another source?

How many cards do you have and how many are reporting zero balance?

Utilization is a huge part of the scoring formula. Utilization is measured as total debt against total credit lines (on revolving lines) and also individual debt on individual lines. Having zero balances helps your score. You best optimize your score by having all revolving report zero except for one cc and have it's balance less than 10% of the credit line.

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These are the FICO score reasons, not from anywhere else.

I have 30 cards, 21 are retail cards, and 6 are signature type cards. 25 should report 0% every month in actuality I can guarantee 15 will report 0%.

I have had most of these cards, especially the store cards, for many years.

The recommended goal used to be to stay under 30% utilization. What changed?

And what caused the change to my #2 reason on the installment loan?

[Anonymous]

"And what caused the change to my #2 reason on the installment loan?"

You said you just got a new car in july14....? That would seem to fit the reason given. A new loan, high balance, no reporting history...

[-NewGuy-]

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@Reighn9 wrote:

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@StartingOver10 wrote:

Are you looking at the FICO score reasons or score reasons from another source?

How many cards do you have and how many are reporting zero balance?

Utilization is a huge part of the scoring formula. Utilization is measured as total debt against total credit lines (on revolving lines) and also individual debt on individual lines. Having zero balances helps your score. You best optimize your score by having all revolving report zero except for one cc and have it's balance less than 10% of the credit line.

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These are the FICO score reasons, not from anywhere else.

I have 30 cards, 21 are retail cards, and 6 are signature type cards. 25 should report 0% every month in actuality I can guarantee 15 will report 0%.

I have had most of these cards, especially the store cards, for many years.

The recommended goal used to be to stay under 30% utilization. What changed?

And what caused the change to my #2 reason on the installment loan?

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You said out of all 30 of your cards 15-25 will report zero. Currently, out of those that aren't reporting zero, what is their balance in relation to the limit?

As SO pointed out above, UTIL is also scored on an individual basis. So, if you have 30 cards with 25 reporting zero and five reporting 90%, even though your total UTIL is under the 30% you mentioned, you're going to get dinged.