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

[Anonymous]

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! 

[Anonymous]

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.

[Anonymous]

FICO scores you on how well you manage credit.

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

[Anonymous]

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

[Anonymous]

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@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

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

nick

[Anonymous]

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.

[Anonymous]

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?

[Anonymous]

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. 

[GFer]

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@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!

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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!

[Anonymous]

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