41% on one card, or 41% overall?
Did your fico rebound to the place it was before the 41% utilization?
Other changes parallel to the deceased util?
yeah that sounds odd.. did any of your cards close, new applications, late payments, etc etc?
From what ive read on here and seen on my credit report, utilization is considered one of the top things that affect your credit score..
along with missing payments.
Still waiting to hear if it's a FICO score, or Credit Karma garbage....
@takeshi74 wrote:
@Anonymous wrote:I have always heard and read that the lower your utilization percentage, the higher your credit score. How is it that, when my utilization was 41%, my score dropped by 10 points. After paying down my credit cards balances and my utilization went down to 4%, my score went up only by 1 point? Not else changed, all payments on time and balances paid down. I don't understand...just 1 point!??
You're probably misplacing causality. It's your balances and your limits as indicated on your report at time of consideration that determine your revolving utilization. A scoring model can only reference the data in a report. It does not have access to current account information.
You need to confirm that the balances reported and that the report updated. CRA's can take several business days after a creditor reports to update the report.
If you're going to try to determine the cause(s) of any score change you have to go to reports from before and after any change and carefully compare to ensure that you account for all changes with a scoring impact. If you're not doing this then that's part of your confusion. To explain what happened above we'd need the details from your reports -- not just what you assume were the only changes. While revolving utilization has a significant impact it is only one of many factors that can affect your scores.
If your revolving utilization dropped from 41% to 4% and you only saw an increase of 1 point then there are a number of possibilities including balance(s) not reporting yet, changes with a bigger negative impact than the positive gain from reducing revolving utilization, etc.
Additionally, the tool you're using may be adding to the confusion. If you're using myFICO monitoring then be aware that it is a trigger based service. Not all activity with a scoring impact is a trigger. The reason(s) cited by myFICO is the reason for the trigger and not necessarily the reason(s) for the score change. Again, you have to go back to the reports to determine what's going on.
We can certainly help but we would need a lot more information from you in order to help you understand.
@Burned2manybridgesB4 wrote:Still waiting to hear if it's a FICO score, or Credit Karma garbage....
Revolving utilization also has a significant impact for VantageScores. CK itself does present some dubious information but dismissing CK as garbage is throwing the baby ourt with the bath water. Do not assume that only FICO matters or that one FICO is valid for all creditors. Not all creditors use FICO in their decision. For those that do use a FICO there are a number of different FICO models. Different models evaluate report data differently and can have different scoring ranges.
Don't forget to put your soapbox away when you're done.
When my total utility raise from almost zero to 25% , with 2 card Max out , 2 card 50%, 8 card with zero balance, my CK score drop from 800 to 625!!
Real Fico from various credit card company shows more realistic ~730.
It will be back next to zero by the end of month, I am getting ready for the Chase Sapphire Reserve.
Real Fico from various credit card company shows more realistic ~730.
It will be back next to zero by the end of month, I am getting ready for the Chase Sapphire Reserve.
EX819 1HP|TU797 1HP| EQ(Fico8 BankCard)841