Credit card utilization and lasting effect

[Anonymous]

I know that credit card utilization is a major part of the Fico score and I normally keep the utilization below 10%. My question is if I allow a large balance one month (which will obviously decrease my score), will the full score reduction go away immediately the next month if the below 10% utilization is restored, or will there be a longer-lasting effect.

Thank you in advance to anyone who knows the answer.

Mike

[haulingthescoreup]

FICO scoring has no "memory" for utilization.

When you (or anyone else) pulls a FICO score, it is a snapshot of what is on your report(s) at that very moment. That's what you're scored on.

Since the reported balance/ util changes as each account updates, your score will change with it.

[Anonymous]

I can say this, I keep my util at 1% every month and I mean every month, but one time I let it report at 9% and my scores dropped like 4-6 points, can't remember exactly. I did this intentionally to see if the 9% util would impact my scores, I also let it report at 5% util once and my scores stayed the same, I'm not sure what would happen if I let 6%, 7% or 8% util report, I just know my scores won't change with 1-5% util, and they will drop 4-6 points at 9%.

But the following month I brought my util back to 1% from the 9% and my scores went right back to where they were. YMMV

HTSU is correct tho, FICO scoring has no memory for util, my circumstances my have been just coincidental.

[Anonymous]

Cool. Thank you both for your answers. I appreciate both of you.

[Anonymous]

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@Anonymous wrote:

I know that credit card utilization is a major part of the Fico score and I normally keep the utilization below 10%. My question is if I allow a large balance one month (which will obviously decrease my score), will the full score reduction go away immediately the next month if the below 10% utilization is restored, or will there be a longer-lasting effect.

Thank you in advance to anyone who knows the answer.

Mike

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Yes.