Guess the score drop! 1% to ZERO utilization

[NRB525]

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@Anonymous wrote:

This is a great message. I was going to start a new message this morning before coming across it. I have a similar situation that I want the insight of others since it closely parallels Sliper's situation. 

I have <1% utilization on 9-10 cards with a total balance of $288. Using Experian CT/CCT it tells me if I pay $95 on the $288 balance, my score will jump 20 points. 

I do believe what Experian CT is telling me, because its simulator has been spot on to date. I just find it very odd and a bit disconcerting that paying down such a small amount in such a small total amount can lead to 20 more points. But when earlier in the year I would pay down my utilization % by paying $1600-$2000/monthly on my balances I'd see a small point increase of between 3-10 points. It just seems a bit unfair, and unbalanced. We're darned if we have a lot of cc debt, darned if we have zero cc debt, and yet oddly enough this point gain is encouraging me to get close to zero, but not exactly at zero. 

I'll take the points. Perhaps all this as it relates to my profile has to do with that all things being equal, I have nothing knocking my score except for a lot of car loan inquiries that I got at the end of November 2014. I'll never allow a dealership to gun blast loan approvals again. I'll visit my credit union first and get a check first. 

Thoughts? 

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Is this 9 of 10 cards, or anywhere from 9 to 10 cards reporting?

In any event, you have 9+ cards all reporting some sort of balance. I don't know if the score simulator also figures if you are paying below $200 total that it thinks it would be impossible for you to continue to have balances on 9 cards.

The projected score bump would be due to fewer cards reporting balances, not so much the amount of total CC debt. If you paid down from $288 to below $200 but kept 9 cards reporting, I don't think you would see a 20 point bump.

[Thomas_Thumb]

Agree, $95 is rather trivial for a 20 point score boost from a utilization perspective.

However, if the $95 pay down zeroed out 5 or 6 cards leaving only one or two with a balance -  then a 15 point boost by reducing # cards reporting a non zero balance (from say 7 to 2) is within reason. If 100% of cards are currently  reporting a non zero balance and QTY is dropped to 1 or 2, then maybe 20 point  bump relating to # cards.

Based on Revelate's data, I suspect Redeyz would not experience a point difference between 1 and 2 cards reporting... or even 3 cards reporting, given a clean profile.

[Anonymous]

No I meant I have 9 or 10 cards on my profile for reporting, but I allow 1-2 to report a balance. That $288 balance is $48 on one account and $240 on another. So EX CT states that if I pay $95 of that $288, then my score will jump 20 points. I intend to only have 1 account reporting any balance going forward. Again this gave me a utilization rate of 0.60% of $41000 available CL. 

Once my payment dates come and close, I'll update on the point gain. I know it seems like a lot of points, but EX has been accurate thus far. 

And I understand the more accounts reporting to zero, the better. 

[Anonymous]

The only unclean thing on my CRA profiles is 10+ inquiries for my new jeep in 11/14. Those too will soon have no scoring effect in <3 months. 

So with 2 accounts reporting a combined balance of $288 out of 10, we'll see what having just 1 account and with a $150 balance will yield. I could pay off the entire thing, but I now want to see if the simulator is to be trusted as I think it is. It has earned my trust. 

AAOA - EX: 9.5 yrs  TU: 6 yrs  EQ: 5.9 yrs

I want all my points.  

[Thomas_Thumb]

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@Anonymous wrote:

The only unclean thing on my CRA profiles is 10+ inquiries for my new jeep in 11/14. Those too will soon have no scoring effect in <3 months. 

So with 2 accounts reporting a combined balance of $288 out of 10, we'll see what having just 1 account and with a $150 balance will yield. I could pay off the entire thing, but I now want to see if the simulator is to be trusted as I think it is. It has earned my trust. 

AAOA - EX: 9.5 yrs  TU: 6 yrs  EQ: 5.9 yrs

I want all my points.  

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Redeyz, thanks for the clarification.

This will be a nice little test. Please report back with results. Looks like your EQ AAoA mightt cross a milestone as that could cloud effect on EQ score.

FYI - Your CB report would be classified as clean even with inquiries. Getting rid of that boatload of inquiries all at once  is likely to boost your score 20 to 30 points - IMO

[masscredit]

I usually have 1-2 cards reporting. Total utilization ranges from less than 1% (I believe they round up) to 2%. Total balances range from just under $100.00 to about $810.00. I haven't seen any score change. I'm starting to let my utilization go higher to see if I have a sweet spot. 

[Thomas_Thumb]

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@masscredit wrote:

I usually have 1-2 cards reporting. Total utilization ranges from less than 1% (I believe they round up) to 2%. Total balances range from just under $100.00 to about $810.00. I haven't seen any score change. I'm starting to let my utilization go higher to see if I have a sweet spot. 

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Inverse, on another thread, reported no score change between 2% and 4.5% but a few point change bewteen 4.5% and 7%.

I am guessing your score will hold at 4% and possibly up to 6% aggregate UT. BTW - do you ever see a score difference between 1 and 2 cards reporting?

[masscredit]

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@Thomas_Thumb wrote:

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@masscredit wrote:

I usually have 1-2 cards reporting. Total utilization ranges from less than 1% (I believe they round up) to 2%. Total balances range from just under $100.00 to about $810.00. I haven't seen any score change. I'm starting to let my utilization go higher to see if I have a sweet spot. 

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Inverse, on another thread, reported no score change between 2% and 4.5% but a few point change bewteen 4.5% and 7%.

I am guessing your score will hold at 4% and possibly up to 6% aggregate UT. BTW - do you ever see a score difference between 1 and 2 cards reporting?

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Did his score go up or down between 4.5% and 7%?  I usually don't see a score chance between 1-2 cards reporting. My TU score was 720 with 2 cards the beginning of last month. Balances were $694.00 and $112.00. It went down to 716 with one card reporting $112.00 so this month I'm going back to two cards with the same balances to see if I get the points back. EQ scores didn't change. 

[Thomas_Thumb]

"Up a few points" going from 7% down to 4.5%.  The # point change likely differs by CB thus, the "a few" generalization.

My definition of a few is 3 to 6.

[Anonymous]

My report is not clean.

I saw a boost form 7% -> 4.5%  This was predicted by the simulator for EQ and EX and documented here http://ficoforums.myfico.com/t5/General-Credit-Topics/Simulator-pay-down-revolving-test/m-p/4146154#...

The simulator recently started showing me another boost at sub 2% on EQ only, that it had not shown me previously.

I do not know what precipitated this possible boost for lower than 2% utilization.

I am at 2.1% now and literally 1.99% triggers the bump on the simulator.

I am going to test sub 2% followed by an ultra lo $2-$5 reporting the next month, but I am expecting my baddies to go away next month.

If possible, I will test the ultra low utilization next month.

I only have 3 cards, so that is one card reporting.  I take a hit for 2 reporting and a beating for 3 reporting.