Scores decreased after balance zero?

[2IMPROVE]

I just checked my fico and my EQ increased 7pts, EX decreased 2pts, and TU decreased 7pts.

New scores EQ 690, EX 645, TU 650

It says I don't have any activity with my revolving cc's.

If it will increase my EX and TU scores to keep a small balance on the cards, and make my timely payments will this same scenario help the EQ as well?

[Anonymous]

It should, since the ideal balance is 1%-9% utilization on your cc's, for maximum effect.

Lenders love to see activity on your cr. It displays to them financial responsibility you are exercising. And that's what it's all about.

[Ljeen]

Hello, for example if a credit limit is 300.00, should I only be charging up to 27.00 to keep the utilization at 9%? 

Thanks.

[Anonymous]

hi Ljeen. Well that is one way to handle it.

But many of us with low limit cc's like that example, make charges to the cc throughout the month, but make what I call "interim payments". That is to say, you pay more than once per month, by checking the cc balance.

Either by going online and tracking your monthly transaction, or by calling the automated attendant for balances.

The trick is to pay down to that 1%-9% utilization, before the statement date.

It takes some effort to find out 3 things to time your interim payments, because you really need to know 3 things: the statement date; the due date; and the date when a ccc reports that account to the CRA, It's a balancing act to be sure.

Hope that helps.

[Anonymous]

Please  also consider asking for CLI.

[haulingthescoreup]

And I don't know how many cards you have, but don't let a bunch report at the same time.

TU seems to obsess about an excess number of accounts reporting. Every now and then I get this, and I figure it's because I have a mortgage and 2 student loans reporting in addition to the HELOC and regular revolving stuff. But DS was over this evening, and we pulled his FICO's x3, and TU snipped that he had too many accounts with balances. He has 4 accounts, one of which is closed, and 2 reporting balances, for 14% util:

You have too many credit accounts with balances.
Your FICO score considers the number of accounts you have with balances. For credit cards, even if you pay them off in full each month, your credit report may still show a balance on those cards. The total balance on your last statement is generally the amount that is shown on your credit report.

Number of your accounts carrying a balance
2 accounts
FICO High Achievers [?] have an average of 3 credit accounts carrying a balance.

We thought this was pretty funny.

So don't turn yourself inside out in an attempt to please the FICO gods, but if you are working especially on TU, let half of your accounts (not just CC's) report $0. FWIW, I have only seen this message on FICO TU, not on the other two.