topic Re: From 1% to 0% util in Understanding FICO® Scoring

From 1% to 0% util

Anonymous — Mon, 10 Aug 2009 00:43:12 GMT

So I lost 12 points on TU and the only differences on my report is cc util aside from new payments posting on loan TL's. I know its said to keep it between 1-9% but wow....lol....12 points...oh well. At least now i know to NEVER let util hit 0% again....

Re: From 1% to 0% util

smallfry — Mon, 10 Aug 2009 12:39:34 GMT

Same thing happened to me. Easily fixed though isn't it?

Re: From 1% to 0% util

haulingthescoreup — Mon, 10 Aug 2009 13:55:41 GMT

At some point, we all give this a try, lol.

Re: From 1% to 0% util

Anonymous — Mon, 10 Aug 2009 14:34:05 GMT

Re: From 1% to 0% util

Anonymous — Mon, 10 Aug 2009 14:35:32 GMT

+ 1

Unless you are shopping new credit, I wouldn't sweat the 12 points. If you are planning to app, then tweak by letting a small balance report.

Re: From 1% to 0% util

Anonymous — Mon, 10 Aug 2009 15:45:11 GMT

Unfortunately, you have to do some experimenting to find that "perfect" utility for you. Think there was a rather lengthy thread about this last summer. 1-9% doesn't work for everyone. I know that if I go above 3%, I get dinged hard. If I go to 0% I get dinged. Dinged if you do, dinged if you don't.

Others reported they could go to 6% before they got hit. There is no "magic" number - I used to think it was score dependent, but evidently not.

Re: From 1% to 0% util

Anonymous — Mon, 10 Aug 2009 17:14:48 GMT

There are also numerous factors for this percentage calculation:

1. Total percentages

2. Individaual account/cc percentages

3. Real dollar amount of the debt (the higher the dollar amount, the lower the percentage you get dinged)

4. Number of accounts reporting a balance in relationship to the percentages of utilization

5. Age of accounts (it seems that new accounts have lower thresh holds for utilzation than aged)

6. Total AAoA

7. Number of accounts

8. Bucket (you are graded on all factors based upon bucketing)

Basically breadth and depth, age, total uti, individual ut, number of accounts, number of balances, bucket etc. all play a role in how uti on your CR is affected.

This is why 1% works for some, others up 9% and others seem to have very little affect as long as they stay below 20% (usually some effect but not monumental).

Re: From 1% to 0% util

Anonymous — Mon, 10 Aug 2009 20:57:23 GMT

I'm in the same situation. My reports are currently < 1% utilization but I just went ahead and paid to put them at 0%. Should I adjust this to keep a few dollar balance?

I just hit the 700 mark (EQ: 700, TU: 715) and I don't want to take any hits to go below.

EQ: 700 (8/9/2009)
TU: 715 (8/3/2009)

Message Edited by Cyan007 on 08-10-2009 04:57 PM

Re: From 1% to 0% util

haulingthescoreup — Tue, 11 Aug 2009 02:41:02 GMT

Cyan007 wrote:

I'm in the same situation. My reports are currently < 1% utilization but I just went ahead and paid to put them at 0%. Should I adjust this to keep a few dollar balance?

I just hit the 700 mark (EQ: 700, TU: 715) and I don't want to take any hits to go below.

EQ: 700 (8/9/2009)
TU: 715 (8/3/2009)

IF you want to maximize your scores, have all cards report $0 except for one. Let that one report $10-20, and then pay it off before the due date, so as to avoid any APR's.

This is if you are concentrating on optimizing your scores. As you just broke 700, I can completely understand not wanting to have them drop back into the 600's, whether you plan to apply any time soon or not.

Re: From 1% to 0% util

Anonymous — Tue, 11 Aug 2009 03:18:01 GMT

Thanks... I'll do that to optimize my score.

Re: From 1% to 0% util

Beautifull — Fri, 20 Nov 2009 17:55:40 GMT

Dear haulingthescoreup

What should you do if you only have one card? I am in the rebuilding stage and this is valuable information. I have another card on the way but my NFCU card is due to report on the 29th of this month. I charged $28 on it and have PIF a week ago. Please advise.

PIF or let it report a small balance?

Beautifull

Re: From 1% to 0% util

Jazzzy — Fri, 20 Nov 2009 21:16:06 GMT

@Beautifull wrote:
Dear haulingthescoreup

What should you do if you only have one card? I am in the rebuilding stage and this is valuable information. I have another card on the way but my NFCU card is due to report on the 29th of this month. I charged $28 on it and have PIF a week ago. Please advise.

PIF or let it report a small balance?

Beautifull

Hi Beautiful,

That is a hard question. Depending on the credit limit of your card, showing $28 on the statement likely won't hurt anything. What is your credit limit?

Are you going to be applying for credit very soon? If not, then don't worry too much about showing a small balance. It will be nice when you get your 2nd card. Then you can let a small balance show on one card and still have the other at zero.

Re: From 1% to 0% util

marty56 — Fri, 20 Nov 2009 21:38:21 GMT

I gain points on TU (10-15) and loose 3 points on EQ for 0% reporting. IMHO everyone should baseline their scores at 0% (if possible) and then experiment with adding a small amount ( 1%, PIF'able) on a single card and see what happens.

Re: From 1% to 0% util

haulingthescoreup — Fri, 20 Nov 2009 23:10:12 GMT

This is an older thread, from back in August, but a member posted today that when s/he had only one card, scores were higher with a $0 balance than with either low or high util.

You said you have "another card on the way" --have you already apped and then been approved?

I'd probably go ahead and PIF this card to where it reports $0. But whichever you do, as long as your one card isn't showing super-high util, I don't think that there'll be that much of a point difference. And if you're not apping immediately for some sort of loan that is score-driven (a mortgage, for instance), it's probably not that big of a deal.

IF you want to maximize scores:

Once you have two cards, have one report $0 and the other some token amount, like $10, and then pay it off well before the due date. It is so, so easy to miss that second step and risk a late.

But if you aren't torturing your scores the way some of us do (out of boredom in my case, lol), just use them and pay them off responsibly. Don't ever carry a balance. If a lender requires interest out of me, they're out of luck. They'll have to survive on the merchant fees I generate whenever I make purchases.

Re: From 1% to 0% util

Beautifull — Fri, 20 Nov 2009 23:23:42 GMT

Thanks a lot for all of your responses!! :-)

My current card is a NFCU secured card $500 cl and the other card, that I have been approved for is an Orchard gold card. I am unsure of the limit.

My goal is to apply for a mortgage within the next year or so, so I am trying to get the scores up as soon as I can. I know that it will take time and patience but, I want to know that I am doing all that I can to maximize my points.

I welcome any and all help!!!!!

Have a GREAT weekend

Beautifull :-)