Reply
Member
Posts: 9
Registered: ‎05-31-2013
0

Why am I being penalized for cc utilization when it's so low??

One of the reasons sited for lowering my FICO score is in the area of cc utilization. It shows I have $81 on one credit card out of $400 available credit. It shows I have $31,900 available on a different credit card with $0 balance. The weird thing is that I'm not connected to the second cc anymore - I was an authorized user on my then-husband's AMEX card but haven't been since 2009, but all three bureaus still count it as available credit line. So why am I being penalized for utilization? And why does it still show as available credit on the AMEX when I'm not on it anymore?? It still shows as 0% utilization on cc's even though there's $81. Do I spend more like $300 on that cc with the $400 limit to finally get recognition for utilization because I'm safe with the AMEX credit limit or will that, too, hurt my score?


Starting Score: 500
Current Score: 631
Goal Score: 700


Take the myFICO Fitness Challenge

Valued Contributor
Posts: 1,966
Registered: ‎04-07-2009
0

Re: Why am I being penalized for cc utilization when it's so low??

Is the AMEX card the type  where the balance is due in full each month? If so this is a charge card and not included in your credit utilizattion.  

Equifax My FICO score 815 5/28/2012, 818 on 7/28/2014 . Average of Accounts 12 years and no Installment accounts. MyFICO TU 810 6/26/2012 809 4/21/2013 MyFICO XPN -805. 2/26/2014 Discover TU FICO 813 App free since 9/2011

Get a myFICO recommended credit card

Copyright ©2001-2013 Fair Isaac Corporation.
All rights reserved.

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). 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.