Dropped pts after increase utilization

Sassy_Taurus · ‎11-10-2015

I've been doing really good with only let one card report a small balance between 1-9%. I've been sick so I forgot to pay off the balance of one of my cards before the statement closed. I just received an myfico alert for Trans showing a 16pt drop. I can only imagine the drop from EX and EQ. My question is will I receive the same pts that I lost back once I pay off my card? I'm trying to qualify to buy a house and will be applying late December.

Thanks!

Anonymous · ‎11-10-2015

Yes. You will get the points back. The current and past FICO models (version 8 and earlier) don't have any memory when it comes to CC utilization.

Just keep all your cards (except one) reporting at $0 with the remaining card reporting a small amount (maybe $20?) so that your total utilization is around 1-4% or so. That's assuming that this poses no financial hardship for you.

PS. To any newcomer reading this thread, this "All Zero Except One" rule is something that you do not need to do every month. It's probably easier for most people to let their cards report naturally. But this "rule" does help people squeeze out some extra points just before an important credit pull.

Sassy_Taurus · ‎11-10-2015

@Anonymous wrote:
Yes. You will get the points back. The current and past FICO models (version 8 and earlier) don't have any memory when it comes to CC utilization.

Just keep all your cards (except one) reporting at $0 with the remaining card reporting a small amount (maybe $20?) so that your total utilization is around 1-4% or so. That's assuming that this poses no financial hardship for you.

PS. To any newcomer reading this thread, this "All Zero Except One" rule is something that you do not need to do every month. It's probably easier for most people to let their cards report naturally. But this "rule" does help people squeeze out some extra points just before an important credit pull.

Thanks CreditGuyInDixie.