UPDATE: 30 pt decrease - 1% util to 20% on one card. Big deal or no?

[DoogieBall]

UPDATED 06.09

Just in case anyone wants DPs, I checked EX report a couple days ago.

CFF reported

Util from 1% to 3% on CFF

AAoA 3 years 4 months to 2 years 11 months.

Revolving accts increase by 1

Total CL increase.

EX from 811 to 780

Hello everyone,

Hoping for an easily understandable answer to this question. 

Some background: For the past 24 months, my statement closings have not shown more than 1% util.  On May 3 I applied for Chase FF, got the 30 day message but was approved 7 days later for $2400.  Made some purchases totaling $500.  When I checked a few times online for closing dates, there was nothing listed.  When I checked today, the first statement had cut.  Paid it in full.

I also checked my reports via Experian/creditchecktotal and the Chase account hasn't reported yet.  If I'm getting the math correct, my util for CFF would be around 20%.  Overall util at 3%.  So, will this affect scoring since no reports show the new account yet?  I'm not applying for anything major for at least two years, so I'm not concerned, just curious.  Thanks in advance!

[FinStar]

Chase tends to report mid-cycle whenever you bring the balance to zero.  So, chances are it may report with the initial utilization for a couple of days (if at all) and then re-report again to reflect the zero balance.  In the grand scheme of things, it should be fine.

[Horseshoez]

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@DoogieBall wrote:

Hello everyone,

Hoping for an easily understandable answer to this question. 

Some background: For the past 24 months, my statement closings have not shown more than 1% util.  On May 3 I applied for Chase FF, got the 30 day message but was approved 7 days later for $2400.  Made some purchases totaling $500.  When I checked a few times online for closing dates, there was nothing listed.  When I checked today, the first statement had cut.  Paid it in full.

I also checked my reports via Experian/creditchecktotal and the Chase account hasn't reported yet.  If I'm getting the math correct, my util for CFF would be around 20%.  Overall util at 3%.  So, will this affect scoring since no reports show the new account yet?  I'm not applying for anything major for at least two years, so I'm not concerned, just curious.  Thanks in advance!

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PenFed did the same thing to me; they reported to the credit bureaus and cut a statement a couple of weeks after I opened my new card and yet a few weeks before my first due date; I have a $6,000 credit limit and the report was for $827, and yeah, for one reporting cycle *some* of my FICO scored took a hit.  Once they started reporting a small or no balance, my numbers immediately rebounded, which in my case was the very next set of reports.

[DoogieBall]

That's good to know about the mid-cycle reporting.  I'm trying to stay organized with payments and not knowing when the statement cuts was picking at me.  During my BK decade, my scores were fluctuating as much as 20 pts a month so a few points here and there aren't a problem.

[Horseshoez]

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@DoogieBall wrote:

That's good to know about the mid-cycle reporting.  I'm trying to stay organized with payments and not knowing when the statement cuts was picking at me.  During my BK decade, my scores were fluctuating as much as 20 pts a month so a few points here and there aren't a problem.

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I'm still 7 months from having my bankruptcy drop off my reports, so I definitely feel what you're saying. 

[Anonymous]

I was searching this topic and just wanted to share my experience from this month. I have had 1% utilization across all credit cards for about 6 months. I had ordered something online that posted days later when that card reported (Amazon). So that one card reported at 11% but my overall is still at 1%. Anyway, my Vantage score is reporting a 50 point score drop! I am not sure if my FICO took the same hit yet or not.

     For background, I have no bankruptcies and the only late payments were on my mortgage from over 4 years ago. (That was an error from their end that I gave up fighting.) I have almost 40K available credit and just accepted a card offer for 11K but that hasn't reported yet. 

     I hope you fare better. I am praying I can bounce back quickly but do not foresee a 50 point increase for paying off $180. Good luck!

[Anonymous]

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@Anonymous wrote:

I was searching this topic and just wanted to share my experience from this month. I have had 1% utilization across all credit cards for about 6 months. I had ordered something online that posted days later when that card reported (Amazon). So that one card reported at 11% but my overall is still at 1%. Anyway, my Vantage score is reporting a 50 point score drop! I am not sure if my FICO took the same hit yet or not.

     For background, I have no bankruptcies and the only late payments were on my mortgage from over 4 years ago. (That was an error from their end that I gave up fighting.) I have almost 40K available credit and just accepted a card offer for 11K but that hasn't reported yet. 

     I hope you fare better. I am praying I can bounce back quickly but do not foresee a 50 point increase for paying off $180. Good luck!

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Rest assured your FICO scores will not drop like your VS3 scores simply for that balance. VS is very volatile with balance changes but FICO is not. Your FICO score changes will be minimal.