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UTILIZATION AT ZERO PERCENT INCREASE BY $2.00 SCORE STILL DROPPED

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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.

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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 654000 (575000 reporting) FICO 8 EQ 714 TU 731 EX 713

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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%.    

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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.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

    




Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 4 of 13
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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!
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

    




Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 5 of 13
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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?

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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.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

    




Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 7 of 13
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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.

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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

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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.

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