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Why Am I Getting Dinged For High Credit Usage When My Utilization is 0%?

Emwilliams2480
New Member

Why Am I Getting Dinged For High Credit Usage When My Utilization is 0%?

What gives? It appears my score gets dragged monthly for this even though my utilization remains between 0-3% each month. What am I not getting. The only outstanding debt I have is my auto loan that I took out last year at around $44k, now paid down to $39k. Am I missing something?

10 REPLIES 10
Bankrupt2019
Established Contributor

Re: Why Am I Getting Dinged For High Credit Usage When My Utilization is 0%?

Your loan is hovering right around %90  









Message 2 of 11
thornback
Senior Contributor

Re: Why Am I Getting Dinged For High Credit Usage When My Utilization is 0%?

Are you reporting all zero balances on your revolving accounts?  If so, assuming you're referring to FICO scores, that's why. 

 

FICO penalizes for "no revolving credit usage" so you need to have at least one card with a balance. The penalty is temporary tho-- any points lost will be regained once a balance reports (the one reporting card should be a bankcard - not a store card, charge card, or credit union card). 

 

If you are reporting at least one balance, then we will need to dig deeper to determine what's happening. 

 

 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 3 of 11
SouthJamaica
Super Contributor

Re: Why Am I Getting Dinged For High Credit Usage When My Utilization is 0%?


@Emwilliams2480 wrote:

What gives? It appears my score gets dragged monthly for this even though my utilization remains between 0-3% each month. What am I not getting. The only outstanding debt I have is my auto loan that I took out last year at around $44k, now paid down to $39k. Am I missing something?


You haven't given us enough information. What scores. Where you're getting them from. What the limits and reported balances are on the revolving accounts. What the negative reason codes are. Etc.


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 4 of 11
thornback
Senior Contributor

Re: Why Am I Getting Dinged For High Credit Usage When My Utilization is 0%?


@Bankrupt2019 wrote:

Your loan is hovering right around %90  


OPs auto loan util - even at 100% - wouldnt cause a drop in points each month. 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 5 of 11
Bankrupt2019
Established Contributor

Re: Why Am I Getting Dinged For High Credit Usage When My Utilization is 0%?


@thornback wrote:

@Bankrupt2019 wrote:

Your loan is hovering right around %90  


OPs auto loan util - even at 100% - wouldnt cause a drop in points each month. 


@thornback took it as OP meaning they had that negative reason code month after month, not an actual score drop monthly.









Message 6 of 11
thornback
Senior Contributor

Re: Why Am I Getting Dinged For High Credit Usage When My Utilization is 0%?


@Bankrupt2019 wrote:

@thornback wrote:

@Bankrupt2019 wrote:

Your loan is hovering right around %90  


OPs auto loan util - even at 100% - wouldnt cause a drop in points each month. 


@thornback took it as OP meaning they had that negative reason code month after month, not an actual score drop monthly.


@Bankrupt2019  Oh... that's not how I read it at all but I see,  now that you mention it, how you got that impression and in that case, you'd be correct lol.

 

Guess we need clarification... 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 7 of 11
BrutalBodyShots
Super Contributor

Re: Why Am I Getting Dinged For High Credit Usage When My Utilization is 0%?

High credit usage can be related to number of accounts with balances, not just dollars. 

 

You could have 5 credit cards, all with $1 reported on them for a total of $5 in revolving debt reported and see that code because you're at 100% of your revolvers with a balance.  It doesn't necessarily mean you're utilizing too many of your available dollars, but rather too many of your available tradelines.  Also with a loan present you're naturally going to have that account with a reported balance, so if you allow 1 revolver to report a balance (2 accounts total) it's still possible to see that negative reason code.  I've seen it with just 1 loan and 1 revolver reporting on some scoring models and that's with aggregate utilization at < 1%.

Message 8 of 11
thornback
Senior Contributor

Re: Why Am I Getting Dinged For High Credit Usage When My Utilization is 0%?


@BrutalBodyShots wrote:

High credit usage can be related to number of accounts with balances, not just dollars. 

 

You could have 5 credit cards, all with $1 reported on them for a total of $5 in revolving debt reported and see that code because you're at 100% of your revolvers with a balance.  It doesn't necessarily mean you're utilizing too many of your available dollars, but rather too many of your available tradelines.  Also with a loan present you're naturally going to have that account with a reported balance, so if you allow 1 revolver to report a balance (2 accounts total) it's still possible to see that negative reason code.  I've seen it with just 1 loan and 1 revolver reporting on some scoring models and that's with aggregate utilization at < 1%.


I'm apparently the only one that totally misread /misunderstood the original post 😳 so just ignore me and my response, OP! 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 11/2020: EX 780 ✦ EQ 771 ✦ TU 781
Current FICO 9s | 11/2020: EX 793 ✦ EQ 780 ✦ TU 778
2020 Goal Score | 800s


My AAoA: 3.8 years not incl. AU / 4 years incl. AU
My AoOA: 7.10 years not incl. AU / 9.10 years incl. AU
Inquiries: EX 0/6 | 1/12 ✦ EQ 1/6 | 2/12 ✦ TU 0/6 | 1/12
Report Status: Clean


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 9 of 11
Remedios
Moderator

Re: Why Am I Getting Dinged For High Credit Usage When My Utilization is 0%?

Unless OP comes back and clarifies, there is no way to tell what they are talking about. 

 

 

Undead Danny Trejo looks strangely like dead Danny Trejo, who looks exactly like alive Danny Trejo. Thanks, Netflix!
Message 10 of 11
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