@curious4 wrote:Both cards are paid off in full monthly with up to $2000 of activity on the cards each month. Usually the credit report shows a $0 balance each month on each card or at times a balance of approximately $100-150 total. So utulization is less than 5%.
When the card which increased the limit to $3500 reported in mid-August all 3 credit bureaus dropped my score radically. Tranunion and Experian which were both around 720 Vantage 3.0 went to 605-610 and Experian Fico 8.0 went from 691 to 668.
0% utilization reporting is not the best thing for your score. When my FICO score dropped after reporting $0 card balances, it even stated "non-usage" was why. The FICO scoring is treating the $0 balances as if the cards aren't being used at all. Lenders also don't like that. For the best scores possible you should leave a small balance (1% or less) on one card each month. Doing this shows responsible credit usage. Your recent increased available credit plus less than 1% credit usage reporting (and not $0) should boost your FICO scores for next month.
@curious4 wrote:Experian Fico 8.0 went from 691 to 668.
All 3 reported the changes to the credit report on hte day of the drop were solely about the credit card limit increase and a slight balnce decrease on that card from $130 to $0.
what would be best approach to increase scores back?
If both CCs reported $0, then you received the "All Zero" penalty. Just let one bankcard (VISA, MC, Discover, AMEX) report a small amount, even $1, and you'll gain those points back. You'll see "Recent CC usage" as a reason your FICO 8 scores are as high as they are.
@curious4 wrote:Hello,
Just curious if anyone else has ever seen this scenario. I have two credit cards, one of them unsolicited raised my limit by $2500 to $3500. The other card has a $2000 limit.
Both cards are paid off in full monthly with up to $2000 of activity on the cards each month. Usually the credit report shows a $0 balance each month on each card or at times a balance of approximately $100-150 total. So utulization is less than 5%.
When the card which increased the limit to $3500 reported in mid-August all 3 credit bureaus dropped my score radically. Tranunion and Experian which were both around 720 Vantage 3.0 went to 605-610 and Experian Fico 8.0 went from 691 to 668.
All 3 reported the changes to the credit report on hte day of the drop were solely about the credit card limit increase and a slight balnce decrease on that card from $130 to $0.
Ax I'm car shopping this is a huge problem and quite unexpected. Has anyone seen a similar scenario and what would be best approach to increase scores back? I also received a notice from the second card that they raised my limit from $2000 to $4000 but that hasn't reported yet.
1. Credit bureaus don't drop your scores.
2. Your FICO scores did not drop from having an increased credit card limit. There is no scenario under which that would cause a drop in your FICO scores.
@curious4 wrote:Hello,
Just curious if anyone else has ever seen this scenario. I have two credit cards, one of them unsolicited raised my limit by $2500 to $3500. The other card has a $2000 limit.
Both cards are paid off in full monthly with up to $2000 of activity on the cards each month. Usually the credit report shows a $0 balance each month on each card or at times a balance of approximately $100-150 total. So utulization is less than 5%.
When the card which increased the limit to $3500 reported in mid-August all 3 credit bureaus dropped my score radically. Tranunion and Experian which were both around 720 Vantage 3.0 went to 605-610 and Experian Fico 8.0 went from 691 to 668.
All 3 reported the changes to the credit report on hte day of the drop were solely about the credit card limit increase and a slight balnce decrease on that card from $130 to $0.
Ax I'm car shopping this is a huge problem and quite unexpected. Has anyone seen a similar scenario and what would be best approach to increase scores back? I also received a notice from the second card that they raised my limit from $2000 to $4000 but that hasn't reported yet.
Is Credit Karma telling you this?
If it is, their algorithms are unique to them. I closed a card in good standing without it affecting the overall utilization by much and they dropped my score. What they fail to tell you that this same card will continue to post for 10 years as good standing closed by consumer.. : just for example....
Good Luck!
Vantage scores are good general indicators but aren't reflective of your actual, current FICO scores. I also experienced a recent 16 point drop in my FICO scores when I accidentally paid all of my card to $0 without letting one report. Oopsie. Came right. back the next month when I let a small balance report.
Having 0% report is not ideal for your score. However, those are some pretty significant drops that would not have occured just from a limit being raised. I wold definately recomend pulling your whole file just to be safe. Vantage scores mean nothing, so don't worry about those. But you are not going to lose 20+ points on a Fico from a cli. This also might self correct when you get back to some balance reporting.
All this PLUS you need a 3rd card. The group can chime in but isn't AZEO optimized for a minimum of 3 cards?
