CC Util affecting FICO score

[joeblow2]

If i have a CC with a $6000 CL and i keep a low balance  under $50 for a few months up to a few years and keep this  balance reporting paying $20 or so a month so i always have a balance reporting. Then 1 month have a 0 balance report but the following moth have the normal balance up to $50 report. How will that 1 month of reporting a $0 balance affect my FICO score. Also have 6 other CC with 0 balances

[haulingthescoreup]

During that one period when you have 0 accounts with balances, you might lose some points. I lost 2, 4, and 6 points (varied by CRA) when I tried this; others have lost more. But when a balance starts showing again on any of the cards, you should be back where you were, not counting any other variables that might be going on.

FICO scoring doesn't have a memory: it's only looking at what's displaying on the scored report.

[joeblow2]

OK so assuming i do go that 1 month or even 2 reporting a 0 balance lose my 2 - 6 points , Once i start reporting the up to $50 balance how soon would i recover those points?

[haulingthescoreup]

Again, it *should* happen whenever someone pulls another report that has the balance showing again.

Scores are created the moment that they are pulled, resulting from whatever is on the reports. You'd want to be sure that the account had updated again, showing the new balance. As always, this is generally on the statement date, with EX updating within 24 hours and EQ and TU taking easily a week.

If you have a credit monitoring service, you can pull your reports to see if the balance is showing up. If it is, then the scores should reflect it.

[joeblow2]

1 more question If i have 2 motgages 1st and 2nd  - 5 year history no lates and the 1 CC reporting the $50 balance on a $6000 CL Then i get another card (exisitng) to report another $50 balance on a $5000 CL . What kind of jump will i see if any in scores?

[haulingthescoreup]

I'll have to leave the predicting to others. If you have only one open CC, you should see an immediate jump by adding a second one. 10 points, maybe? And don't let both report a balance; just one. You will probably be better in scoring if you do.

[joeblow2]

The scenario would be 6 other cards average age 5 yrs. all 0 balances but the 2. The 2nd CC reporting a balance would be an existing card. What would the jump be approx? 

[haulingthescoreup]

---

joeblow2 wrote:
The scenario would be 6 other cards average age 5 yrs. all 0 balances but the 2. The 2nd CC reporting a balance would be an existing card. What would the jump be approx? 

---

Sorry, I'm on too many threads right now, and I lost track.

You probably would see a drop, because you already have adequate credit, and your util is low enough. Your scores might recover after 4 - 6 months, and they might be 5 - 10 points better after a year, due to having more clean history reporting, but the initial impact would be negative --a drop in AAoA if the new one takes you under 5y 0m AAoA, plus the ding for the inq, plus the ding for having an account younger than a year.

The instant increase would only occur if your credit profile "needed" more revolving credit, and yours does not.