More than 0% but less than 1% utilization.

[gh17]

I use my credit cards to pay for literally everything besides student loan payments, car payments, rent, and taxes.

I'm usually at around 1-4% utilization.  Recently I got a bunch of credit limit increases and now it's hovering somewhat lower.  Credit Karma just dinged me from an A to a C grade for dropping to 0% utilizaton.  It's really more like 0.4% or something - there are balances reporting on the cards.  I paid off some of the cards earlier than usual via online transfers, not for any reason in particular, but I think normally I would still be at greater than 1%.  However, i'm wondering if anyone knows if your real credit score takes a hit for dropping below 0.5%.  I know Credit Karma isn't exactly the most legitimate source for FICO score trends.

Obviously this isn't supper important since I can still be sure to be above 1% next time I'm applying for credit, but I'm just curious if it's something i should watch out for.
 

[user5387]

There are some previous threads around here on this topic, and I believe that the conclusion is that rounding down to 0% utilization is not done.

So letting a $4.97 balance report on a card is distinct from letting $0 report.

[blondy250]

Its done by credit karma, I have approx 120k in available credit. CK dings me for 0% utilization(reporting) even though its less then 1, they round it down to 0. Of couse it doesn't seem to affect my real scores (updated in sig as of today) they grade me a "C" in utilization.

[coterotie]

Whenever I get that low, it gives me the message: "Consistent high use of credit, approaching credit card limits."  I think it can't understand close to zero.  The same message across multiple models.

[Revelate]

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@blondy250 wrote:

Its done by credit karma, I have approx 120k in available credit. CK dings me for 0% utilization(reporting) even though its less then 1, they round it down to 0. Of couse it doesn't seem to affect my real scores (updated in sig as of today) they grade me a "C" in utilization.

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I noticed the same thing but I've never had the 0 balances ding on my FICO score when I've been at a few dollars out of my own credit limit at the time.

CK is as CK does.