topic Credit Score dropped 37 points because credit card balance was $0 in Understanding FICO® Scoring

Credit Score dropped 37 points because credit card balance was $0

Anonymous — Fri, 28 Aug 2020 21:37:58 GMT

I have read on the forum that because I only have 2 credit cards and that a $0 balance can affect your credit. You need at least a balance on one credit card. I assumed my score dropped so many points because I have a thin credit file. One of my cards has a $7750 credit limit. How much can I put on that card to create a balance but not get my credit utilization too high? Less than 8.9% or should it be as low as 2% to get all my points back. Also, I am positive that it was no other factors that caused the score to drop. No additional lines of credit, no accounts opened or closed, and no credit pulls. The only change was a $0 credit balance on both cards.

Re: Credit Score dropped 37 points because credit card balance was $0

RSX — Fri, 28 Aug 2020 22:04:11 GMT

is this a CK score? typically FICO scores won't swing this much for a 0 balance on all cards

have it report $5-10 - that is all that is needed to not be ALL ZERO

Re: Credit Score dropped 37 points because credit card balance was $0

Ficoproblems247 — Fri, 28 Aug 2020 23:01:57 GMT

@Anonymous wrote:
I have read on the forum that because I only have 2 credit cards and that a $0 balance can affect your credit. You need at least a balance on one credit card. I assumed my score dropped so many points because I have a thin credit file. One of my cards has a $7750 credit limit. How much can I put on that card to create a balance but not get my credit utilization too high? Less than 8.9% or should it be as low as 2% to get all my points back. Also, I am positive that it was no other factors that caused the score to drop. No additional lines of credit, no accounts opened or closed, and no credit pulls. The only change was a $0 credit balance on both cards.

The thresholds that will begin to cause point loss are 9% aggregate, and 29% individual. As long as you're under both of them you are all set. As mentioned, all it takes is that small amount to report too, so anywhere in between and you're good.

Re: Credit Score dropped 37 points because credit card balance was $0

SouthJamaica — Sat, 29 Aug 2020 02:53:00 GMT

@Anonymous wrote:
I have read on the forum that because I only have 2 credit cards and that a $0 balance can affect your credit. You need at least a balance on one credit card. I assumed my score dropped so many points because I have a thin credit file. One of my cards has a $7750 credit limit. How much can I put on that card to create a balance but not get my credit utilization too high? Less than 8.9% or should it be as low as 2% to get all my points back. Also, I am positive that it was no other factors that caused the score to drop. No additional lines of credit, no accounts opened or closed, and no credit pulls. The only change was a $0 credit balance on both cards.

I'm not sure why you're asking about only one of your cards.

With your aggregate utilization, the lower the better. I would say 1% to 3% has been the sweet spot in my profile.

With individual utilization it's not so clear, except that it definitely needs to be 28% or lower.

It's not a question of how much you "put" on the card, it's a question of how much is reported.