UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED

[Anonymous]

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.

[SouthJamaica]

---

@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]

---

@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%.    

[Anonymous]

and you did not lose points by going from 0% utilization to 1% utilization. If you lost points, it is for another reason, I promise.

[Anonymous]

By the way, welcome to the forum, hope to see many more posts from you!

[Anonymous]

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]

Creditwise99 There are so many different reasons that your score could drop. The only way to have a chance of figuring out why is to have a credit report from the day before and the day off. Then you have to go line by line and compare every difference and report it and then we can tell you what caused it hopefully.

Meanwhile no you do not want to keep every account at a zero balance. Or more specifically you want at least one account to report a small balance. That doesn’t mean you have to maintain that balance you can pay it right after reports but before it charges any interest.

But the point is, for best scoring you have to show at least one account with a small balance. And that means it Has to be reported, not your active balance, but the balance reported to the credit bureaus once a month.

[Anonymous]

---

@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.

[Anonymous]

Thanks for responding the score and what caused the drop in my credit score derives from Credit Karma

[Anonymous]

---

@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.