Decreased utilization=lowered Fico score

[Anonymous]

Interesting.  This month I experimented with my overall credit card utilization and lowered it from 7% to 1%.  Result:  A 3 point drop in my Experian score, from 645 to 642.  Still waiting on the other reports. 

[Anonymous]

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@Anonymous wrote:

Interesting.  This month I experimented with my overall credit card utilization and lowered it from 7% to 1%.  Result:  A 3 point drop in my Experian score, from 645 to 642.  Still waiting on the other reports. 

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The decrease in your score is probably tied to some other factor that you aren't aware of.  If one thing I've learned about the scores going up and down in small amounts is that you can't rely on the reason given by the alerts. In the end lowering your utilization will be a positive in your credit file.  I would try not to get caught up in worrying about scores going up or down in small amounts.  It will drive you nuts 

[Anonymous]

@Irish80:  Actually you are probably right about the decrease being due to something else.  I see now that it is probably due to my new Discover card finally reporting as a new account with Experian, even though this is not stated as a reason.  The new account has already reported with the other two  reporting agencies. 

And yeah, no reason to get all OCD over 2 or 3 points.

[Anonymous]

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@Anonymous wrote:

@Anonymous:  Actually you are probably right about the decrease being due to something else.  I see now that it is probably due to my new Discover card finally reporting as a new account with Experian, even though this is not stated as a reason.  The new account has already reported with the other two  reporting agencies. 

And yeah, no reason to get all OCD over 2 or 3 points.

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That's what probably lowered the score.  We all tend to get a bit OCD about our scores at times so I understand.  Good luck in the future and enjoy that Discover card !

[Anonymous]

Thanks!  Just as a follow up: Equifax and Transunion have now reported, and scores have not moved as a result of my decrease in utilization.   I guess in this case, as long as I'm in the 'under 10%' range, it's pretty much the same scores.   

[Anonymous]

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@Anonymous wrote:

Thanks!  Just as a follow up: Equifax and Transunion have now reported, and scores have not moved as a result of my decrease in utilization.   I guess in this case, as long as I'm in the 'under 10%' range, it's pretty much the same scores.   

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Yup.  It's really hard to gauge the method to this scoring madness.  All you can do is follow the suggestions and overtime scores will rise.  I should show you all of my alerts and how some seem very counterintuitive and at times they'll show 3 or 4 'reasons' for a score drop or rise that are contradictory.  That's why I tell people not to get too stressed over a small drop or rise in their score.

[Imperfectfuture]

I fully expect to drop score watch after my January billing. It's time to truly garden, and watching for score increases will tempt me and drive me crazy. I think ordering the scores every 6 months is good enough, and use the free services to monitor reports.

Just my deflated 2 cents.

[Anonymous]

@Imperfectfuture wrote:
I fully expect to drop score watch after my January billing. It's time to truly garden, and watching for score increases will tempt me and drive me crazy. I think ordering the scores every 6 months is good enough, and use the free services to monitor reports.

Just my deflated 2 cents.

@Imperfectfuture:  Whatever works for you.   We all have different  techniques to avoid temptation as we watch the garden grow.  In my case, I use the scores as a motivator to keep my utilization and/or apping in check.   My goal is to stay in the garden til at least July.   Good luck to you!

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