cancel
Showing results for 
Search instead for 
Did you mean: 

UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
New Visitor

UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED

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.

Message 1 of 13
12 REPLIES 12
Super Contributor

Re: UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED


@Creditwise99 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.


Total revolving limits 719k (592500 reporting) FICO 8 scores: EQ 735 TU 782 EX 746
Message 2 of 13
Super Contributor

Re: UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED


@Creditwise99 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%.    

Message 3 of 13
Valued Contributor

Re: UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED

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.







Installment loan reported this month,so technically, I'm at 2 months, but AoYA points were NOT reset. When new CCs hit and it is reset, I'll put the number it is.+1,+2,+2(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated AUG 4, '19. Since then, 5 HP dings to add; will update again.
Message 4 of 13
Valued Contributor

Re: UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED

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







Installment loan reported this month,so technically, I'm at 2 months, but AoYA points were NOT reset. When new CCs hit and it is reset, I'll put the number it is.+1,+2,+2(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated AUG 4, '19. Since then, 5 HP dings to add; will update again.
Message 5 of 13
New Visitor

Re: UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED

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?

Message 6 of 13
Valued Contributor

Re: UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED

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.







Installment loan reported this month,so technically, I'm at 2 months, but AoYA points were NOT reset. When new CCs hit and it is reset, I'll put the number it is.+1,+2,+2(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated AUG 4, '19. Since then, 5 HP dings to add; will update again.
Message 7 of 13
Super Contributor

Re: UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED


@Creditwise99 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.

Message 8 of 13
New Visitor

Re: UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED

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

Message 9 of 13
Super Contributor

Re: UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED


@Creditwise99 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.

Message 10 of 13
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.