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Significant score drop from crossing 50% threshold?

Blogger

Significant score drop from crossing 50% threshold?

New balances on two of my cards reported a couple of days ago, increasing the utilization on those cards from just under 50% to 68%, and from 34% to 52% respectively and overall utilization from 7% to 9%. The result was a 15 points drop in my ScoreWatch FICO score (can never remember which scoring model is used here). None of my other cards is reporting a balance. 

 

I'm going to bet that the impact of 7% to 9% overall utilization is minimal, so it must be the individual balances crossing certain thresholds that caused the significant score drop. Since both cards crossed 50%, I think this is likely a threshold. Anyone else had a similar experience with a 50% threshold? 

6 REPLIES
Valued Contributor

Re: Significant score drop from crossing 50% threshold?

I have had the same experience in the past. And from my experience it seems that Experian is especially sensitive to crossing the threshold.

The credit monitoring service I subscribe to through Wells Fargo has a really good calculator built into it. It allows you to run what if scenarios. Every time I do this I noticed that when I crossed the 50% threshold scores dropped.
FICO 08-EX: 746 TU: 752 EQ: 750 AAoA: 4yrs TLs: 40 Neg: 0

Credit Limits: $300,000+
Miles: 400,000+
MRPs: 200,000+
Cash Back: $2,000+
Blogger

Re: Significant score drop from crossing 50% threshold?


lhcole77 wrote:
I have had the same experience in the past. And from my experience it seems that Experian is especially sensitive to crossing the threshold.

The credit monitoring service I subscribe to through Wells Fargo has a really good calculator built into it. It allows you to run what if scenarios. Every time I do this I noticed that when I crossed the 50% threshold scores dropped.

The Wells Fargo calculator is an interesting observation. Next month I shall bring the utilization on one of my cards down to below 50% and see what impact that will have on my score! Smiley Happy

Valued Contributor

Re: Significant score drop from crossing 50% threshold?

Good thinking. Do you subscribe to a service as well?
FICO 08-EX: 746 TU: 752 EQ: 750 AAoA: 4yrs TLs: 40 Neg: 0

Credit Limits: $300,000+
Miles: 400,000+
MRPs: 200,000+
Cash Back: $2,000+
Senior Contributor

Re: Significant score drop from crossing 50% threshold?


HiLine wrote:

New balances on two of my cards reported a couple of days ago, increasing the utilization on those cards from just under 50% to 68%, and from 34% to 52% respectively and overall utilization from 7% to 9%. The result was a 15 points drop in my ScoreWatch FICO score (can never remember which scoring model is used here). None of my other cards is reporting a balance. 

 

I'm going to bet that the impact of 7% to 9% overall utilization is minimal, so it must be the individual balances crossing certain thresholds that caused the significant score drop. Since both cards crossed 50%, I think this is likely a threshold. Anyone else had a similar experience with a 50% threshold? 


Beacon 5.0 for Score Watch 

Blogger

Re: Significant score drop from crossing 50% threshold?


lhcole77 wrote:
Good thinking. Do you subscribe to a service as well?

I have Score Watch. The new balance decrease alert feature is going to help Smiley Wink

DaBears: Beacon 5.0 it is. Thanks for the info!

Valued Contributor

Re: Significant score drop from crossing 50% threshold?

Looking forward to test results
FICO 08-EX: 746 TU: 752 EQ: 750 AAoA: 4yrs TLs: 40 Neg: 0

Credit Limits: $300,000+
Miles: 400,000+
MRPs: 200,000+
Cash Back: $2,000+