Credit score drop when reducing CC use to one card?

[avv7c0]

Just got a ScoreWatch alert indicating that our scores lost 3-5 points when our AMEX reported a $0 balance (previously $95 due to AF). Typically I only carry a balance, less than 3%, on a single card (not this AMEX) strictly for FICO scoring purposes. When the AF first reported, we saw a score increase of 3-5 points, and now that it's been removed, we're seeing the reverse? Did I miss something in FICO Scoring 101? I thought multiple revolving balances looked bad.

While it doesn't affect me per se, it affects my wife as she is a few points shy of the 720 needed for our mortgage app currently in process.

[sunshine7157]

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@avv7c0 wrote:
Just got a ScoreWatch alert indicating that our scores lost 3-5 points when our AMEX reported a $0 balance (previously $95 due to AF). Typically I only carry a balance, less than 3%, on a single card (not this AMEX) strictly for FICO scoring purposes. When the AF first reported, we saw a score increase of 3-5 points, and now that it's been removed, we're seeing the reverse? Did I miss something in FICO Scoring 101? I thought multiple revolving balances looked bad.

While it doesn't affect me per se, it affects my wife as she is a few points shy of the 720 needed for our mortgage app currently in process.

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That seems odd. The opposite happened to me. I was at 736 EQ FICO when my Amex reported at $49 (the annual fee which got past me before I knew it was there). When Chase reported a $651 balance 3 days later (also the only card I ever carry a balance on for reporting purposes), my score dropped to 732. My uiil was still < 9% either way but I did lose points for that 2nd cc balance reporting.

[vanillabean]

I'm guessing the FICO algorithm suffers from lack of oxygen beyond the altitude of 810. DW and I regularly have scores of 817 and 814 with multiple positive balances reporting and thousands of dollars in reported credit card debt.

[pizzadude]

The recommended starting point for optimizing utilization is a single card reporting less than 9%, however it is not a rule that always works for everyone.

SomE people have Reported that FICO® scoring is happier when two cards report balances, you'll just have to experiment to find the sweet spot for your situation.

[crunching_numbers]

I bet it matters how many open accounts you have, and the %age of TL's reporting a balance.  You probably can have more balances if you have more accounts. It seems that people report YMMV quite a bit on this one. Like previous posters asid, those suffering from airbleeds (over 800) might have different rules too.

[marty56]

TU seems more senstive to multiple cards reporting then EQ from my experience.  EQ seems to be slightly more senstive to util.