topic Re: Losing points at 5% utilization??? in Understanding FICO® Scoring

Losing points at 5% utilization???

percy81 — Fri, 15 Mar 2013 11:06:55 GMT

Heyyy ficoers, last month I had just two cards report a balanace of I believe 137.00 was the total on one and 383 on the other (taking advantage of 0%APR intro) So last month my total utilization was 4%. I paid off the 137.00 balance and I was waiting for some pending charges to hit for my chase card but they were taking foreverrrr, next time I will be smarter and stop using a card a week before the statement cuts. I was eyeballing my chase account waiting for my $0 balance to show the pending charges a couple days before the statement cut and then it finally showed up ON THE STATEMENT DATE, blah!!! So a balance of 141.00 just reported and I went from 4% utilization to 5% and lost 2 points, Not a lot I know, but do the math with me, last month card A reported $137.00 this month it reported $0 card B just reported a balance of $141.00 after being reported as a $0 balance last month.

Correct me if my math is wrong, but that's a difference of $4.00 louzy dollars/4 Dólares/4 buckaroos/4 greenbacks!!!!!! How can a difference of $4.00 cause your score to go down 2 points and up 1 in utilation percentage?

I'll be learning this fico formula for a long time, just when you think you understand, haha.

Re: Losing points at 5% utilization???

Repo-ed — Fri, 15 Mar 2013 11:25:52 GMT

Nothing out of the norm here as far as util% impacting FICO scores.

Lots of people have this happen to them. I've had it happen to me.

Some see optimal points at 9% reporting, while others see it at 1%.

Re: Losing points at 5% utilization???

percy81 — Fri, 15 Mar 2013 11:31:09 GMT

I just hate seeing the downward red arrow on my credit score history it's Psychologal.

Re: Losing points at 5% utilization???

IOBA — Tue, 19 Mar 2013 01:54:34 GMT

Just mess with the big picture even more, I had a reporting balance of about 23.4k on my cc, and I received the message --- that to up my credit score, I REALLY needed to charge on my cc's and let the balance report. My credit score (real, not faked) -- 790. Like 23.4k isn't enough??

The message I received when I checked my score.

"There are no recent balances on your revolving credit accounts.

Your credit report shows no recent balances on your revolving accounts. Your FICO score was hurt because you are not currently demonstrating active revolving credit management.

Actions you can take: You might consider moderate and responsible use of your credit cards (such as charging low balances and repaying them on time)."

You just never know what the magic number is for people. My suggestion is to keep watching YOUR numbers and find that magic zone.

Re: Losing points at 5% utilization???

VirtualCuriosity — Tue, 19 Mar 2013 12:57:20 GMT

The FICO Gods are a funny bunch of squirrels.

Re: Losing points at 5% utilization???

Anonymous — Wed, 20 Mar 2013 01:07:33 GMT

doubt a lender will change a decision for a point or two

once your AAoA takes you across 760, you should be in great shape