For the past few months my balances (amount owed) have been increasing. As this has happened, MyFico alerts me that I had a score increase. I just don't understand why I would have a better score as my utilization hits near maximum?
@jbishop1001 wrote:For the past few months my balances (amount owed) have been increasing. As this has happened, MyFico alerts me that I had a score increase. I just don't understand why I would have a better score as my utilization hits near maximum?
What are the limits on your cards? How long has each card been opened?
It is possible that if you have a short term credit file, and low CL on your cards, your "high utilization" is a small total dollar amount.
It is also possible the positive effect of making monthly payments on each of the cards is weighing more heavily positive as each of those months is added. If you have only a few months of activity, every additional positive month is adding a significant "new payment" history chunk to your file.
If you get CLI and continue to raise your total amount outstanding, total dollars outstanding grows, then that will eventually outweigh the additional months of payments, because the percentage (my term) of new months is less as your background / history increases.
