Score Dropped for 0% utilization help me understand.

[1hotcat]

This seem too complicated to understand. HELP 

Last month I had 1% utilization and my score was increasing.  So I paid the balance on the one card had and my score dropped 35 pts eq and 19pts tu ex ? Anyone knows the mystery behind this ?

[lg8302ch]

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@1hotcat wrote:

This seem too complicated to understand. HELP 

Last month I had 1% utilization and my score was increasing.  So I paid the balance on the one card had and my score dropped 35 pts eq and 19pts tu ex ? Anyone knows the mystery behind this ?

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Fico does not like 0% utilization because that means you are not using credit. Fico is a tool for lenders  to score your credit worthiness and for this you need to use some credit. Looking at it like this it might make a bit more sense?

Best results is 0 balance on all but 1 account and on that 1 account 1-9% ...this will optimize your Fico score

[1hotcat]

I thought that was the case. I wanted to get my score up a little more to qualify for a better rate for a car loan. I forgot to mention that I am rebuilding my credit. 9 months in on my 1st card and 5 others since. Paid 100% since.  That is why I'm so heartburned over the drop in scores.  Now how will it take get the scores back up? It is a pretty big drop.  

[lg8302ch]

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@1hotcat wrote:

I thought that was the case. I wanted to get my score up a little more to qualify for a better rate for a car loan. I forgot to mention that I am rebuilding my credit. 9 months in on my 1st card and 5 others since. Paid 100% since.  That is why I'm so heartburned over the drop in scores.  Now how will it take get the scores back up? It is a pretty big drop.  

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Don't worry ...Fico has no memory. Score drops for utilization reasons will come  right back up as soon as you pay  down or in your case as soon as you let 1% report again.  Once your lenders report for next month it will get corrected immediately. 

[1hotcat]

Thanks, I think I will go on a 1% shopping spree. Gas station here I come.