Your loan is hovering right around %90
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.
@Anonymous 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.
@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 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 I took it as OP meaning they had that negative reason code month after month, not an actual score drop monthly.
@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 I 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...
@Anonymous 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!
