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dramatically lowering utilization IMMEDIATELY increase credit score?

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tonyjones
Valued Contributor

Re: dramatically lowering utilization IMMEDIATELY increase credit score?


@Anonymous wrote:
I lowered my utilization by $1500 and my TU score dropped 6pts. Why? I was so proud of myself. 1st time I've ever paid a CC in full w/out being charged interest and my score gets dinged. I know it's only 6 points. Just odd

It's because your balance is reporting 0 which MyFICO does not like.

 

With $0 balance you get hit 10 points.

 

FICO-Scoring-Model-e1335744261617[1].png

Current Fico Scores: (December 2023)
Message 11 of 20
Anonymous
Not applicable

Re: dramatically lowering utilization IMMEDIATELY increase credit score?

I went from 38% utilization to 13% and it dropped my score 10 points. When I'm applying for a mortgage in a week, I was super upset. Doesn't make any sense. 

Message 12 of 20
racer-x
Valued Contributor

Re: dramatically lowering utilization IMMEDIATELY increase credit score?

I paid $20k in cc debt last month, and only gained 30 pts...then had a balance increase of $44 and lost 6 pts.  (shake my head, rollseyes, face palm) lol

Message 13 of 20
Anonymous
Not applicable

Re: dramatically lowering utilization IMMEDIATELY increase credit score?

It's about as logical an answer as any,  Lol

Message 14 of 20
Anonymous
Not applicable

Re: dramatically lowering utilization IMMEDIATELY increase credit score?

We can do the 20K in CC debt where I miss all my payments again, if myFico prefers that better.  NOT!!  NEVER AGAIN.

Message 15 of 20
Anonymous
Not applicable

Re: dramatically lowering utilization IMMEDIATELY increase credit score?

That's really odd.   I don't get credit scores.  I've tried, but they don't make sense to me.

Message 16 of 20
tonyjones
Valued Contributor

Re: dramatically lowering utilization IMMEDIATELY increase credit score?


@Anonymous wrote:

We can do the 20K in CC debt where I miss all my payments again, if myFico prefers that better.  NOT!!  NEVER AGAIN.


You want one of your CC to report a balance between 1-9% monthly.

Current Fico Scores: (December 2023)
Message 17 of 20
racer-x
Valued Contributor

Re: dramatically lowering utilization IMMEDIATELY increase credit score?


@tonyjones wrote:

@Anonymous wrote:

We can do the 20K in CC debt where I miss all my payments again, if myFico prefers that better.  NOT!!  NEVER AGAIN.


You want one of your CC to report a balance between 1-9% monthly.


Nope.  That's a myth.  It's been proven to be false over and over again.

Message 18 of 20
Anonymous
Not applicable

Re: dramatically lowering utilization IMMEDIATELY increase credit score?


@racer-x wrote:

@tonyjones wrote:

@Anonymous wrote:

We can do the 20K in CC debt where I miss all my payments again, if myFico prefers that better.  NOT!!  NEVER AGAIN.


You want one of your CC to report a balance between 1-9% monthly.


Nope.  That's a myth.  It's been proven to be false over and over again.


I have to disagree racer

In 12/14  I had 5 credit accounts. 1 of which was a medical collection of $556...my 3 cc's totalled 80% util.  I had the medical collection paid and removed(PFD) and paid my cc down to 2% utilization.  My score skyrocketed from those two affects to my credit to the toon of 140 points.  

 

I can attest to the fact that if you lower your utilization below 10% on 1-2 cards yours and anyone elses scores will soar, provided that you do not have lates, collections and BKs on your report.  It's been my experience, that many times new ficoers come here and are amazed by events and they do not take into consideration that late payment from 2 years ago or other marks..  

Message 19 of 20
racer-x
Valued Contributor

Re: dramatically lowering utilization IMMEDIATELY increase credit score?


@Anonymous wrote:

@racer-x wrote:

@tonyjones wrote:

@Anonymous wrote:

We can do the 20K in CC debt where I miss all my payments again, if myFico prefers that better.  NOT!!  NEVER AGAIN.


You want one of your CC to report a balance between 1-9% monthly.


Nope.  That's a myth.  It's been proven to be false over and over again.


I have to disagree racer

In 12/14  I had 5 credit accounts. 1 of which was a medical collection of $556...my 3 cc's totalled 80% util.  I had the medical collection paid and removed(PFD) and paid my cc down to 2% utilization.  My score skyrocketed from those two affects to my credit to the toon of 140 points.  

 

I can attest to the fact that if you lower your utilization below 10% on 1-2 cards yours and anyone elses scores will soar, provided that you do not have lates, collections and BKs on your report.  It's been my experience, that many times new ficoers come here and are amazed by events and they do not take into consideration that late payment from 2 years ago or other marks..  


Dam n it, not again.  Get;s me everytime....I forgot all of these with my post: Smiley Very Happy Robot tongue Smiley LOL Woman Very Happy Man LOL Cat LOL Smiley Happy and lol, RTFOL, rollseyes, shakes head, face palm, LMAO, JK, N2MHJC. 

 

Ima funny guy, nobody gets me, but me.

 

 

Message 20 of 20
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