From 1% to 5% ulitzation cost me 23 points

[kiea]

I don't understand how my score can drop by so many points when my ulitzation is still under 8%. My score went from 647 to 624. I understand my score will drop because my utilization went up but 23 points...wow.

I was so close to having a 670 credit score now I feel like I'm starting all over.

[MartyWrite75]

Don't feel bad. I have a 20 point drop reported today, saying that I have 0% utilization when I have a balance on one card.

I am beginning to learn that the AZEO method doesn't quite work for me. From here on out, I will have a 1% balance on each card. Maybe my points will return. I hope so.

[Anonymous]

You didn't post enough of the details.  See my signature link on posting help requests regarding utilization.

[kiea]

Yes, I think I'm going to keep my ulitzation at 1% too. I thought I will be okay 5% but I guess not.

I'm learning the hard way

[SouthJamaica]

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@kiea wrote:
I don't understand how my score can drop by so many points when my ulitzation is still under 8%. My score went from 647 to 624. I understand my score will drop because my utilization went up but 23 points...wow.

I was so close to having a 670 credit score now I feel like I'm starting all over.

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Despite the conventional wisdom expressed on this site that it doesn't matter what the overall utilization is, so long as it's less than 9%, my experience has been otherwise, and I do see score changes in FICO 8 as my overall revolving utilization goes up and down.

Plus there are other utilization factors that can be at play, such as highest individual utilization, number of cards reporting a balance, percentage of cards reporting a balance, etc.

[kuku4koco]

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@kiea wrote:
I don't understand how my score can drop by so many points when my ulitzation is still under 8%. My score went from 647 to 624. I understand my score will drop because my utilization went up but 23 points...wow.

I was so close to having a 670 credit score now I feel like I'm starting all over.

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When I went over 15% utilization on my Amex last month... I lost 20 points (on EX).  When I performed AZEO back in January, effectively bringing my aggregate utilization to under 3% (from 17%)... I gained 9 points total across the board, that's it. 

It's different strokes for different folks... it all depends on your profile.

Generally speaking, those points are typically given back after you pay down the utilization.  Also, util varies so much from day to day... it generally only matters if you are seeking new credit. (i.e. approval for a loan, etc.)

[Anonymous]

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@kiea wrote:
Yes, I think I'm going to keep my ulitzation at 1% too. I thought I will be okay 5% but I guess not.

I'm learning the hard way

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You're still not learning, actually.  Going from 1% to 5% did not lower your score.

Until you actually share what changes occurred on your profile (meaning, list each card's limit and what the balance change was from the last cycle), you may never know what it was.

But there is no way that you can blame your aggregate utilization for this score decrease.  That's not what happened, so please do not spread false myths that others might read and believe by mistake.

[kiea]

Nothing else changed. I got a new card last month but my score only went down by 2 points. I checked my score on the 1st and it was 647. I checked today after my balance updated and it is 623. So it came from my ulitzation

[kiea]

I know it's probably going to take 2 or 3 months to get the points back that is I'm aggravated.

It's frustrating because it takes months to build your score up but 1 thing can bring it right back down.

[Anonymous]

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@Anonymous wrote:

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@kiea wrote:
Yes, I think I'm going to keep my ulitzation at 1% too. I thought I will be okay 5% but I guess not.

I'm learning the hard way

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You're still not learning, actually.  Going from 1% to 5% did not lower your score.

Until you actually share what changes occurred on your profile (meaning, list each card's limit and what the balance change was from the last cycle), you may never know what it was.

But there is no way that you can blame your aggregate utilization for this score decrease.  That's not what happened, so please do not spread false myths that others might read and believe by mistake.

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I'm not so sure you are hitting the nail squarely. I have two cards and never more than $100 balance on either one, and never a balance on both at the same time. My CLs are $3,500 and $12,000 so no matter how you slice the bread, my utilization is never above 1% total and 3% on any individual card. Other than the balance coming down on my mortgage each month I never have ANY credit transactions other than those two cards. I have multiple Paid Satis TLs, both credit cards and installment loans and mortgages. As a card gets used the score may go up 20 points and as that balance is paid off it goes down those same 20 points. According to MyFico my FICO8 scores are all between 775 and 785. My experience - pay off a car loan and you lose 40 points. Pay off a Mortgage and expect to lose 60 points. I really see no rhyme or reason behind the swings in my score caused by such a small balance and utilization. Fico seems to love small balances but hates $0.