topic Re: WOW!! 27 points lost for "not using credit" in General Credit Topics

WOW!! 27 points lost for "not using credit"

Anonymous — Fri, 03 Apr 2009 16:05:59 GMT

So, last month I had 2 cards report a balance and only wanted one to report a balance this month (I've played around with this quite a bit and it seems that my scores is the highest when only one card reports a $5 balance...yep FIVE bucks...silly!). I wanted to let my Chase card report a balance this month but the statement doesn't get updated until the 8th...my BofA already reported as zero balance. The ONLY change on my reports is that I now have ZERO accounts reporting any type of balance and I lost 27 points on TU and 9 points on EQ.

OUCH!

I got the little red flag telling me I am not using any of my available credit, too. WOW, WOW. Can't wait for that chase balance to report. Sheesh!

Re: WOW!! 27 points lost for "not using credit"

Anonymous — Fri, 03 Apr 2009 16:07:17 GMT

Here's the exact message:

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.

Re: WOW!! 27 points lost for "not using credit"

Anonymous — Fri, 03 Apr 2009 16:23:06 GMT

FICO scores you on how well you manage credit.

If you aren't using it, you aren't managing it......in their opinion.

Re: WOW!! 27 points lost for "not using credit"

Anonymous — Fri, 03 Apr 2009 16:38:52 GMT

Oh, I know....

I'm just shocked that I lost 27 points. That's a LOT. Ironically, only 9 on EQ. In 5-6 days I'll be right back up again, but sheesh!

ETA:

One thing I just thought of is that I don't have any installment accounts at the moment. So, I suppose it may have a lessor effect on those that atleast have some type of installment account since that reports a balance...

Message Edited by UpUpUp on 04-03-2009 12:38 PM

Re: WOW!! 27 points lost for "not using credit"

Anonymous — Fri, 03 Apr 2009 16:45:03 GMT

@Anonymous wrote:
Oh, I know....
I'm just shocked that I lost 27 points. That's a LOT. Ironically, only 9 on EQ. In 5-6 days I'll be right back up again, but sheesh!

ETA:
One thing I just thought of is that I don't have any installment accounts at the moment. So, I suppose it may have a lessor effect on those that atleast have some type of installment account since that reports a balance...
Message Edited by UpUpUp on 04-03-2009 12:38 PM

So is it bad to have 0 balaces? Should we have at least $5 on them?

nick

Re: WOW!! 27 points lost for "not using credit"

Anonymous — Fri, 03 Apr 2009 16:55:32 GMT

You should have atleast 1 card report a balance. If you have multiple cards, maybe 2 cards. The balance should always be under 9% of your available CL. How much exactly, and how many cards should be reporting a balance depends entirely on what else is on your credit report. Everyone's profiles are different. In my case, after experimenting a bit, I have found that allowing just one card to report only $5 gives me the best scores.

Re: WOW!! 27 points lost for "not using credit"

Anonymous — Fri, 03 Apr 2009 17:00:31 GMT

Man that confusing. I have 2 car loans and 16 cc's I'm looking to pay 10-12 of them off to 0 balances. that would leave me 6-4 reporting balances. Would this hurt more than help?

Re: WOW!! 27 points lost for "not using credit"

Anonymous — Fri, 03 Apr 2009 17:02:04 GMT

Well if they were all reporting balances, that's going to help you a lot. Don't avoid paying off your cards just to gain a few extra points. You def. don't want them all reporting balances.

Re: WOW!! 27 points lost for "not using credit"

GFer — Sat, 04 Apr 2009 01:38:36 GMT

@Anonymous wrote:
Well if they were all reporting balances, that's going to help you a lot. Don't avoid paying off your cards just to gain a few extra points. You def. don't want them all reporting balances. Amen to that!

Especially in this time of 'credit crisis'. That would scare me to death! Not to mention the money you'll save!!! I bet when you pay many of those down to -0- balances you will get a hefty score increase!

Re: WOW!! 27 points lost for "not using credit"

Anonymous — Sat, 04 Apr 2009 02:34:05 GMT

I only have one creditcard report on m trans and today it has 0 balance. Should I use 5 dollars?

my eq has a car loan. I dont know what to do to get a few points for next month?

Thanks

Re: WOW!! 27 points lost for "not using credit"

nothingman02 — Sun, 05 Apr 2009 04:43:30 GMT

The car loan is an installment account and I believe will not count in your utilization. You would have the highest scores at 9% overall utl. of your revolving credit.

Re: WOW!! 27 points lost for "not using credit"

Anonymous — Sun, 05 Apr 2009 12:42:44 GMT

@nothingman02 wrote:
The car loan is an installment account and I believe will not count in your utilization. You would have the highest scores at 9% overall utl. of your revolving credit.

Not true. I have the highest score when I only have $5 reporting on one card. That leaves me at less than 1%. Just going up to 2-3% dings me considerably. But, obviously, having 0 report has the same effect.

Re: WOW!! 27 points lost for "not using credit"

nothingman02 — Sun, 05 Apr 2009 12:56:40 GMT

Hmm...thanks for the info then. I was under the impression that 9% is optimum. I will see though as I am trying out 2.5 utl this month and will try 0 the next. I had 9% the last month.

Re: WOW!! 27 points lost for "not using credit"

Anonymous — Sun, 05 Apr 2009 17:44:17 GMT

nothingman02 wrote:
Hmm...thanks for the info then. I was under the impression that 9% is optimum. I will see though as I am trying out 2.5 utl this month and will try 0 the next. I had 9% the last month.

Under 9% is optimum.

Some do report seeing a few more points for getting even lower. But for the most increase get below 9%, but more than 0%.

Re: WOW!! 27 points lost for "not using credit"

Anonymous — Mon, 06 Apr 2009 12:17:31 GMT

@nothingman02 wrote:
Hmm...thanks for the info then. I was under the impression that 9% is optimum. I will see though as I am trying out 2.5 utl this month and will try 0 the next. I had 9% the last month.

Yeah, you want to play around with this for a little while until you find your "sweet spot". Stay under 9% and bounce around between letting just a few dollars report to whatever will take you up to - but not over - 9%. Someone just reported a few days ago that their util went up to 7% and they lost 7 points. I get hit by letting 2-3%. It's strange.