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Balance Increased by $2, utilization at zero percent score still dropped 6 points. I was trying to increase my utilization to at least 1% but looks like that will also dropped my score, I thought it was bad to keep your utilization at zero continually, how can I raise it to 1% without my score dropping, I want it to increase.
@Anonymous wrote:Balance Increased by $2, utilization at zero percent score still dropped 6 points. I was trying to increase my utilization to at least 1% but looks like that will also dropped my score, I thought it was bad to keep your utilization at zero continually, how can I raise it to 1% without my score dropping, I want it to increase.
You just need to have $10 or so reporting on 1 card to avoid the all-cards-at-zero penalty.
@Anonymous wrote:Balance Increased by $2, utilization at zero percent score still dropped 6 points.
What score are you looking at?
If your [reported] balance increased by $2, you're not at 0% utilization. Any reported non-zero number even if it's a tiny decimal gets rounded up to the next whole number... so, if your reported balance is $2 on a (say) $3000 limit, while that's .0007% utilization and most CMS would round it down to 0%, know that the Fico algorithm rounds it up to 1%.
Thank you for responding, Iwas wondering why would my score drop, I thought it was not wise to keep a zero balance for lengthy period of time?
@Anonymous wrote:Thank you for responding, Iwas wondering why would my score drop, I thought it was not wise to keep a zero balance for lengthy period of time?
You still have not told us the source of your score. We don't know if this is a Fico score, or perhaps a VS 3.0 referenced score that is unmeaningful/nearly irrelevant.
Thanks for responding the score and what caused the drop in my credit score derives from Credit Karma
@Anonymous wrote:Thanks for responding the score and what caused the drop in my credit score derives from Credit Karma
That's sort of what I figured. CK does not provide a Fico score, it's from the VS 3.0 model, one that isn't meaningful and is highly irrelevant.
Pay those scores no mind and grab a real Fico score from a source such as creditscore.com every month for free.