Reply
Frequent Contributor
Posts: 415
Registered: ‎08-13-2008
0

How many cards should report a balance?

I have 5 cards. Two months ago i had two cards reporting a 1% balance. Last month i only had one card reporting and my score dropped 5 pts. How many cards should i have reporting a balance

Equifax - 658, Experian -628, Transunion- 704 In the garden until 01/01/2016
Moderator
Posts: 4,695
Registered: ‎12-18-2013
0

Re: How many cards should report a balance?

The general thought is to have one card report a balance, with the balance being somewhere between 1-9% UTIL. People have different sweet spots in that range.

 

What score was it?

Frequent Contributor
Posts: 415
Registered: ‎08-13-2008
0

Re: How many cards should report a balance?

663

Equifax - 658, Experian -628, Transunion- 704 In the garden until 01/01/2016
Valued Contributor
Posts: 1,698
Registered: ‎01-05-2010
0

Re: How many cards should report a balance?

[ Edited ]

CreditGuy03 wrote:
I have 5 cards. Two months ago i had two cards reporting a 1% balance. Last month i only had one card reporting and my score dropped 5 pts. How many cards should i have reporting a balance

 

That's how my EQ08 acted too, opposite of my EQ04. It appears to vary with FICO models.

 

Never underestimate the power of denial
Moderator Emeritus
Posts: 16,383
Registered: ‎03-12-2007
0

Re: How many cards should report a balance?


CreditGuy03 wrote:
I have 5 cards. Two months ago i had two cards reporting a 1% balance. Last month i only had one card reporting and my score dropped 5 pts. How many cards should i have reporting a balance

Are you certain that nothing else changed on your CR? I assume your talking about your FICO score, right?

Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
New Contributor
Posts: 52
Registered: ‎04-10-2009
0

Re: How many cards should report a balance?

[ Edited ]

 My husband also paid two cards to a zero balance that were over the limit and his score only jumped 13 pts. All of his revolving accts are at zero balance 

Highlighted
Valued Contributor
Posts: 1,794
Registered: ‎07-01-2010
0

Re: How many cards should report a balance?

[ Edited ]

It might be worth considering some of the background here.

 

Suppose that I'm trying to help a friend improve his finances, and I go over to his house one day, and notice a large stack of bills on his desk.  I look through the bills, and notice quite a few CC statements, with balances like $59 and $387.

 

Is there an issue here?  Possibly so, because my friend may not be able to manage all the bills, and his finances may spin out of control.

 

Suppose I have another friend with good credit, and she doesn't care about paying off her balances before the statement date, and instead, just sends in a check as soon as she receives CC statements.

 

Is there an issue here?  Probably not.

 

The point is that for some people in some circumstances, the number of CC balances may be a useful indicator.  Presumably this is driven by the person's credit history (bucket), and the number and size of balances.  A useful scoring algorithm has to distinguish between the two cases above.

 

At the other extreme, I have lost around 10 points with EX 04 when all CCs are reporting $0.  I expect that there are several scenarios that lead to this situation -- (1) serious illness, (2) disengagement from the credit world, (3) anticipation of future financial difficulties with a switch to cash, and (4) overzealous MyFico readers trying to optimize their scores.  I imagine that these kinds of behaviors are negative indicators, but they're not in the same category as something that is more tangible, like a 30-day late payment.

 

My understanding is that FICO weights are based on statistical crunching of actual reports, so it's not a case of a FICO analyst plucking numbers out of thin air.

 

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.