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Score went up 20 points over utilization?

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Anonymous
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Score went up 20 points over utilization?

Hello! So I'm so new at credit cards, that I can't even get my FICO score yet. I have one month left and then I'll get my FICO score. But I look at Credit Karma every month. It's a long story, but my credit card was stolen and I just recently got it back. But while I was waiting on the new one, I got an email from Credit Karma saying congratulations on paying my card down. I looked and my score went up over 20 points. So, should you pay off your card completely every once in a while? Does it actually give you a boost in credit score? I've been keeping the utilization very low every month, but I've never paid it all the way.

 

I realize this thread might be null since Credit Karma uses Transunion and Equifax, but I was wondering if FICO was similar.

 

Thanks for any help!

7 REPLIES 7
Anonymous
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Re: Score went up 20 points over utilization?

CK provides you with VantageScores not FICO scores, so pay those scores no mind.

 

If you have only 1 credit card, you should pay it off every month but let a small balance of a few dollars report on it.  Showing this tiny balance, or 1% utilization, will give you the best possible FICO score for having only 1 CC once it's available to you.  For ideal FICO scoring with respect to utilization, one must possess 3 or more credit cards.  For now since you only have 1, just make sure that it reports a tiny balance every month and you'll be doing the best you can with what you've currently got.

Message 2 of 8
Anonymous
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Re: Score went up 20 points over utilization?

Thank you very much BrutalBodyShots!

 

I hope to get another credit card when I get my FICO scores. I hope the VantageScores are at least similar to the FICO scores. If they are, I'm in great shape. 

Thanks again!

Message 3 of 8
Anonymous
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Re: Score went up 20 points over utilization?

Some people report their VantageScores being similar to their FICO scores.  Some say their VS is as much as 100 points higher than their FICO.  Others say their FICO scores are as much as 100 points higher than their VS.  It's really all over the place if you ask around.

 

If you are considering getting another credit card once your FICO scores are generated, I'd suggest getting two at the same time.  This way you'll have 3 cards which is ideal for maximizing your FICO score with respect to utilization.  Also, if you apply for 2 at the same time, they won't "know" about each other as neither will have reported to the bureaus yet, which could give you a more favorable approval result.  Before you app though, I strongly recommend doing extensive research on the cards that you are considering applying for.  You want to be sure of approval and approval with favorable terms.

Message 4 of 8
Anonymous
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Re: Score went up 20 points over utilization?

Vantage Scores have always been useless for me.  Always!

 

Back in April of this year, my Vantage Scores were showing 80 points higher than my FICO scores.  In June, my Vantage Scores were over 100 points higher than my FICO scores.

 

Now, in August, my Vantage Scores are way lower than my FICO scores.

 

Ignore Vantage Scores.  Remember: Equifax/Transunion were both fined and penalized by the government for telling people that Vantage Scores were useful.  Even the government knows they're junk scores that are useless for everything but fantasy play time.

 

Pay $1 at CCT to pull your FICO scores from the trial program.

Message 5 of 8
Anonymous
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Re: Score went up 20 points over utilization?

I agree with everyone else. My FICO scores are 80-120 points higher than what Credit Karma says. If you want your real score(s) you need to get a 3-bureau paid service from Experian, etc. Then you can not only see your FICO 8 scores, but FICO 2, FICO Mortagage, FICO Bankcard, and so on.

Message 6 of 8
Anonymous
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Re: Score went up 20 points over utilization?

BTW, just for clarity,, nobody here is raining on your use of Karma.  It's a valuable tool for pulling your EQ and TU reports -- folks here are just being skeptical about the value of the scores.  But man is it ever good that you are getting in the habit of looking at the actual reports themselves.

 

I like the suggestion of using the $1 trial at CCT (Credit Check Total) once you are eligible for true FICO scores..  Also like the isea of you applying for two credit cards on the same day -- and doing a bunch of recon to make sure you are getting the right ones.

Message 7 of 8
Anonymous
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Re: Score went up 20 points over utilization?

Thanks for all of the help!

And I hope my FICO scores aren't too much different. 


And thanks for saying that CreditGuyInDixie! I'm really trying to have good credit and habits.I don't use autopay so I can get in the habit of paying everything on time. 

Thanks again guys!

Message 8 of 8
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