TransUnion utilization score penalty if low or high?!

[Eyepinpools]

I know the models penalize you for high Util but read a post on here earlier that I cannot find that suggested a TU8 penalty for under a 2% Util? Is this correct? 

I have started implementing AZEO but was paying the card with a balance to below 1%. Am I better off score wise to have it at 3% or some other value? 

Nothing seemed to change on my report and the last update showed one card with a balance of $131 on a $7k CL with TCL 25.5k. Score went from 776 to 763. 

[Anonymous]

Whenever I let my TU utilization drop below 2% my scores drop there between 35 and 50 points, once I am back to over 2% my scores are back to normal. So to answer your question, YES, if your utilization on TU goes below 2% expect a drop in your score. I learned it the hard way LOL

Thanks

Mark

[Eyepinpools]

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@Anonymous wrote:

Whenever I let my TU utilization drop below 2% my scores drop there between 35 and 50 points, once I am back to over 2% my scores are back to normal. So to answer your question, YES, if your utilization on TU goes below 2% expect a drop in your score. I learned it the hard way LOL

Thanks

Mark

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Do you mind me asking what your scores are at on both sides of the penalty? Are other people experiencing this as well? I believe you were the one I saw posting about this for the first time. 

[Anonymous]

My TU scores is currently 771, it dropped to 737 when my utilization dropped below the 2%. I would have liked to owe less on my credit report but I tested this three times, all three times had the same results so now I am sure to have 2% to 3% reporting utilization at all times

Thanks

Mark

[SouthJamaica]

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@Eyepinpools wrote:

I know the models penalize you for high Util but read a post on here earlier that I cannot find that suggested a TU8 penalty for under a 2% Util? Is this correct? 

I have started implementing AZEO but was paying the card with a balance to below 1%. Am I better off score wise to have it at 3% or some other value? 

Nothing seemed to change on my report and the last update showed one card with a balance of $131 on a $7k CL with TCL 25.5k. Score went from 776 to 763. 

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There is no such thing as a TU score. There are FICO scores based on TU data. FICO scores based on TU data do not penalize you for having lower than 2% utilization, either in individual account utilization or in aggregate utilization.

I never heard of such a thing. 

I have a strong hunch that the people who are saying it are people who are using Credit Karma and talking about their Vantage scores which are wild and thankfully are not FICO scores.

[Mr_Mojo_Risin]

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@Eyepinpools wrote:

I know the models penalize you for high Util but read a post on here earlier that I cannot find that suggested a TU8 penalty for under a 2% Util? Is this correct? 

I have started implementing AZEO but was paying the card with a balance to below 1%. Am I better off score wise to have it at 3% or some other value? 

Nothing seemed to change on my report and the last update showed one card with a balance of $131 on a $7k CL with TCL 25.5k. Score went from 776 to 763. 

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I've haven't heard of that with TU.

My scores stay pretty much the same if I'm doing AZEO at 1%-4% UTL.

If you can, try to bring that $131 balance under $100 and see if that makes a difference.

When I had an AZEO card under $100, I noticed a difference. It's been quite a while though, haven't done AZEO since last November I think.

[chijo]

I haven't noticed that with my accounts. I check the big 3 Vantage scores and the FICOs regularly. I have gone between 1% to 6% or so on my card charges with a balance on only one card most of the time.