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Why am I being penalized for cc utilization when it's so low??

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onmyway2day
Established Member

Why am I being penalized for cc utilization when it's so low??

One of the reasons sited for lowering my FICO score is in the area of cc utilization. It shows I have $81 on one credit card out of $400 available credit. It shows I have $31,900 available on a different credit card with $0 balance. The weird thing is that I'm not connected to the second cc anymore - I was an authorized user on my then-husband's AMEX card but haven't been since 2009, but all three bureaus still count it as available credit line. So why am I being penalized for utilization? And why does it still show as available credit on the AMEX when I'm not on it anymore?? It still shows as 0% utilization on cc's even though there's $81. Do I spend more like $300 on that cc with the $400 limit to finally get recognition for utilization because I'm safe with the AMEX credit limit or will that, too, hurt my score?


Starting Score: 500
Current Score: 631
Goal Score: 700


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AndySoCal
Senior Contributor

Re: Why am I being penalized for cc utilization when it's so low??

Is the AMEX card the type  where the balance is due in full each month? If so this is a charge card and not included in your credit utilizattion.  

FIC Scores XPN v8 808 V2 831 (SDFCU) TUC V 8 803 07/25 EFX Bankcard v8 822 EFX FIC0 v8 800 Vantage score 4.0 817 via JC Penney
JC Penney 10/2008 4,700 US Bank Cash 08/2010 12,000 Citibank Custom Cash 5/2015 11,100 State Dept. FCU 06/2023 25,000 02/2024 Redstone FCU Signature VISA 10,000 08/23/2024 Commonwealth Credit Union 15000 07/25
Banking: Lafayette FCU Fortera FCU State Department FCU Pelican State CU Redstone FCU Hughes FCU Commonwealth FCU
My personal blacklist Axos Bank, Bank of America, Synchrony Bank Capital One TD Bank Comerica Bank BMO
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