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

UpUpUp
Valued Contributor

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

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! 

Message 1 of 15
14 REPLIES 14
UpUpUp
Valued Contributor

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

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.

 

Message 2 of 15
Moderator Emeritus

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

FICO scores you on how well you manage credit.

 

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

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Message 3 of 15
UpUpUp
Valued Contributor

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

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
Message 4 of 15
denied-again
Established Member

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


@UpUpUp 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

Message 5 of 15
UpUpUp
Valued Contributor

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

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.
Message 6 of 15
denied-again
Established Member

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

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?
Message 7 of 15
UpUpUp
Valued Contributor

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

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. 
Message 8 of 15
GFer
Valued Contributor

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


@UpUpUp 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! Smiley Wink



EQ 817, EX 815, TU 813 (Updated 1/5/18: TU 843

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Message 9 of 15
KDx
Contributor

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

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

Message 10 of 15
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