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HERE'S THE SKINNY ON ZERO BALANCES

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vanillabean
Valued Contributor

Re: HERE'S THE SKINNY ON ZERO BALANCES

 


@fused wrote:

 

IIRC, in the past, I lost more than 15 points on TU for 0% util reporting.


 

I just lost 22 points on TU for bringing down my last card to $0. It was well worth the experiment.

 

DW at the same time is now down to one card on TU and gained 7 points. Sweet times lie ahead.

 

Message 11 of 32
Anonymous
Not applicable

Re: HERE'S THE SKINNY ON ZERO BALANCES

I have 3 cards, one of which is a Signature card. I thought it was supposedly reporting my highest past balance as my limit (?). Anyway, I've been letting one of the three cards report a 1% balance each month, alternating them. My EQ score was 806 and TU was 798. Last month, I let all 3 report $0 and EQ took away 1 point, TU stayed the same. In fact, I paid off a personal loan a couple of months ago and TU didn't budge then either. EQ took away 3 points for that.

 

 

 

 

Message 12 of 32
fused
Moderator Emeritus

Re: HERE'S THE SKINNY ON ZERO BALANCES

 


@Anonymous-own-fico wrote:

 


@fused wrote:

 

IIRC, in the past, I lost more than 15 points on TU for 0% util reporting.


 

I just lost 22 points on TU for bringing down my last card to $0. It was well worth the experiment.

 

DW at the same time is now down to one card on TU and gained 7 points. Sweet times lie ahead.

 


I'm sorry you lost 22 points on TU.Smiley Sad  In the past, I had the same thing happen to me. I still don't have any way to explain how I gained 3 points on TU with $0 util.

 

Message 13 of 32
vanillabean
Valued Contributor

Re: HERE'S THE SKINNY ON ZERO BALANCES

 


@fused wrote:

 

I'm sorry you lost 22 points on TU.Smiley Sad


 

Don't be! It was import to me to note the baseline. I'm already back to 1%, it's just not reported yet.

 

Message 14 of 32
Duke-of-Earl
Regular Contributor

Re: HERE'S THE SKINNY ON ZERO BALANCES

 

Well, these experiments are all over the map, either influenced by other factors we're not aware of, or maybe just not deterministic.  Here are my results to throw into the average ~~~~

 

Sep 09  --  EQ & TU both 813  --  balances totalled $237 on AmEx, BofA and Cap1

Nov 09  --  EQ 809 / TU 819     --  all zero balances.

Dec 09  --  EQ & TU both 813  --  balance $10 on Cap1, others zero.

  FastFwd

May 10  --  EQ & TU both 813  --  balance $10 on BofA, others zero.

 

I charge an average of about $1000 every month, spread over these three cards, but since Dec 09 have been paying off the total charged during each billing cycle (or $10 less) just before it ends.

 

I had read several earlier threads about zero balances on this forum, and I thought my results totally confirmed a pretty solid consensus that EQ penalizes you for all-zero balances.  The boost on TU was unexpected.  But it's opposite to what the OP experienced here.  Entropy only increases.

 


Starting Score: EQ 804 - (April 2009)
Upgraded thanks to FICO Forums: EQ 813 / EX 842 / TU 823 - (FICO scores from mortgage lenders, June 2010)
Recent Scores: EQ 807 / TU 799 - (March 2012)
Goal: Survive Another Day
Take the FICO Fitness Challenge
Message 15 of 32
poet
Regular Contributor

Re: HERE'S THE SKINNY ON ZERO BALANCES

 Wow, I'd better run to IKEA and buy some placemats. Smiley Very Happy


Starting Score: 550
Current Score: 673 EQ, 681 TU, 650 EX
Goal Score: 720

Update April 1: TU 615/EQ624
Update June 28: TU 641/EQ 626
Update Sept 21: TU 681, EQ 673, EX 650 (FAKO)
I FINALLY got that car at the rate I wanted! Thanks, FICO Forums!

Take the FICO Fitness Challenge
Message 16 of 32
vanillabean
Valued Contributor

Re: HERE'S THE SKINNY ON ZERO BALANCES

 


@Anonymous-own-fico wrote:

 


@fused wrote:

 

IIRC, in the past, I lost more than 15 points on TU for 0% util reporting.


 

I just lost 22 points on TU for bringing down my last card to $0. It was well worth the experiment.

 

DW at the same time is now down to one card on TU and gained 7 points. Sweet times lie ahead.

 


 

This morning was filled with sweetness.

 

While I lost 0 points on EQ and 22 points on TU in pursuit of the $0 baseline, DW today lost 7 points on EQ and 17 points on TU.

 

In short, this household has a total of $0 of reported credit card debt. That will soon change. Smiley Wink

 

Message 17 of 32
geronimo2008
Regular Contributor

Re: HERE'S THE SKINNY ON ZERO BALANCES

 


@MarineVietVet wrote:

 


@Anonymous wrote:

I inadvertently let my accounts report zero balances.  Here's

what happened.

 

EQ - gained back 4 pts of the 8 Iost last month.

 

802-8=794

794+4=798

 

TU - lost 12 pts for not using credit.  WTF?   This not what the score simulator said.

         Says the average high achiever has at least $5000 in debt?????

Is TU alright.  I am going to freeze them and not order any more reports from them.Smiley Mad

 

EX - 782--stayed the same.

 

 

 

 

 


That's why it's called a simulator and why I never use such things. The real world can't be simulated or estimated by a software program.  Smiley Happy

 

 

 

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Whats In Your FICO Score


Of course since FICO itself is a software program you would think that another software program justt might do a passable job of simulating it.

 

Message 18 of 32
haulingthescoreup
Moderator Emerita

Re: HERE'S THE SKINNY ON ZERO BALANCES

True, but they're not going to give away the store by making the simulator so precise that we could reverse engineer it and determine more of the algorithm.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 19 of 32
Anonymous
Not applicable

Re: HERE'S THE SKINNY ON ZERO BALANCES

So... Is it safe to assume it's best to carry a 3-9% balance on at least half your cards?

Message 20 of 32
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