increased utilization point drop

Anonymous · ‎09-07-2018

2 weeks ago, I got my fico score 8 from experian. It was 720. I was ecstatic. After so many years of missed payments and bad credit, I had sat back and waited for things to drop off.

Earlier this year I got a secured cc from local cu. Only things open at the time were that card and a car loan. So I app'ed for a Discovery and Amex PRG. Got approved for both. From the inquiries of both my score dropped to 701. A 19 point drop? I previously had 0 inquiries.

Now admittedly I screwed up and let my cc($1k limit) go from $150 to $360. I missed my statement date by 1 day. It is paid off now but when reported to the bureaus it was $360. My score dropped from 701 down to 674! A 27 point drop. Really? That seems huge. Now my 2 new cards arent't reporting yet. But can I expect to get the equivalent back of the 27 points, as well as whatever I would've picked up for paying it off?

I am hoping that I will get back up to about 720 by next statement and then hopefully begin to pick up more points as the 2 new cards begin reporting. Or am I hoping ofr too much?

I'm looking to get a 2nd car loan and possibly try for a Chase card in the next 6 months. So I got the score bug and once I saw my score was higher than what it I thought it would have been, I don't want to go backwards. I'm tired of paying out the @%& in interest on my car loans.

Anonymous · ‎09-07-2018

Hopefully it won't report a zero balance on your credit reports. You will lose some points for that. Your total UTI is 36% and your individual UTI is the same. You are taking penalties for both along with your recent inquiries. Without the new cards reporting, I would try to let a balance post of $89 or less(but not zero) for that 1k CL. JMO

DollyLama · ‎09-07-2018

Yes with a thin file the inquiries will sting your scores a bit. One year will be no longer scoreable in regards to FICO 8. Yes, the crossing the greater than 28.9% utilization threshold of the one card would also impact the score, but that is easily rectified next statement.

Do not forget that your Average Age of Accounts (with 2 new accounts) will also impact your scores, from what I'm reading you were not quite at a year with the one CC you had. Your age of youngest account has also dropped. They will slowly bounce back, and the year mark on the 2 new cards (as long as you do not app anymore) will jump significantly at the year mark, as long as timely payments, and low utilization.

Anonymous · ‎09-07-2018

Thank you for the responses. So since I paid off that cu card, you're saying charge like $50 just so it reports something? But after my Amex which never has a balance, and the Discover start reporting don't I want to keep one either the discover or cu cc at $0? I don't want all of my cc reporting balances from what I've read. Also the Discover is 10k so I'll have my utilization will be real low on that one.

My Aaoa is 3 years priors to the 2 new cards. So I know that will come down. And when my cards hit 1 year that'll be a little rebound. Is that because they are my youngest account or is that a rebound on any cc that hits a year? Like will I get some points back when my cu cc hits a year(6 months from now)?

Anonymous · ‎09-08-2018

That's great that you picked up a few more cards. I would put any reporting balances on the Discover and just pay the statement balance every month so you always have utilization reporting. Since your credit lines now total 11k, ideally leave a zero balance on everything but the Discover at which point don't let it report over $979($890 if you can help it). Your FICO as far as UTI will be at the best possible spot.

JoeLuvsHisCredit · ‎09-08-2018

@Anonymous wrote:
Thank you for the responses. So since I paid off that cu card, you're saying charge like $50 just so it reports something? But after my Amex which never has a balance, and the Discover start reporting don't I want to keep one either the discover or cu cc at $0? I don't want all of my cc reporting balances from what I've read. Also the Discover is 10k so I'll have my utilization will be real low on that one.

My Aaoa is 3 years priors to the 2 new cards. So I know that will come down. And when my cards hit 1 year that'll be a little rebound. Is that because they are my youngest account or is that a rebound on any cc that hits a year? Like will I get some points back when my cu cc hits a year(6 months from now)?

Yes that's how you do it. Don't let any card report more than 8.9% (just one card) for the best score

Congrats WOW 10K SL on Discover WOW

KELSTAR · ‎09-08-2018

@Anonymous wrote:
Thank you for the responses. So since I paid off that cu card, you're saying charge like $50 just so it reports something? But after my Amex which never has a balance, and the Discover start reporting don't I want to keep one either the discover or cu cc at $0? I don't want all of my cc reporting balances from what I've read. Also the Discover is 10k so I'll have my utilization will be real low on that one.

My Aaoa is 3 years priors to the 2 new cards. So I know that will come down. And when my cards hit 1 year that'll be a little rebound. Is that because they are my youngest account or is that a rebound on any cc that hits a year? Like will I get some points back when my cu cc hits a year(6 months from now)?

The only individual card concerning age is your oldest account(AooA). That specific card's age will gain you a few points the longer it is open and reporting.
AAoA is age of individual accounts added together and divided by the number of accounts. If you have 3 accounts that total 33 total months open between them this month, your AAoA IS 11 months. If you don't open anymore accounts between now and next month, in 1 month your AAoA will be 12 months and FICO gives you points when your AAoA hits those yearly markers.
Good luck!

Signature as of 10/01/21. Clean file. MYFICO 3B. I live in Green Bay, Wisconsin for those tracking what credit bureau is pulled by location.
FICO 8 EQ=796 TU=799 EX=801
FICO 9 EQ=816 TU=816 EX=813
MORTGAGE SCORES EQ=773 TU=782 EX=787
AAoA=4Y3M AoOA=11Y4M AoYA=5M
VANTAGE SCORES EQ=825 TU=813 EX=813
BUSINESS CREDIT SCORES. Formed LLC 6/1/18. YEARLY SALES=3M
EXPERIAN BUSINESS CREDIT SCORE=77 EXPERIAN FINANCIAL STABILITY RISK RATING=1 SMALL BUSINESS SCORE SERVICE SCORE=210 D+B=80
HARD PULLS last 12 months EQ=1 TU=1 EX=1 Three new accounts reporting.
HARD PULLS last 24 months EQ=1 TU=2 EX=2 Four new accounts reporting.
INCOME=$290k as of 10/01/21 for income stated on applications. DTI=2.5% Business sales 300k monthly.
MAIN BUSINESS and PERSONAL BANKING=CHASE
MORTGAGE=800K 03/21 2.25%
INSTALLMENT LOAN. Vehicle loan opened 08/18. Zero down. 45K at 0% for 60 months LINCOLN FINANCE.

OPEN PERSONAL ACCOUNTS/OPEN DATE
DISCOVER=34k 10/17 CITI COSTCO VISA=16k 06/18 US BANK CASH+=7k 06/18 PENFED PLATINUM REWARDS=10k 07/18 CHASE FREEDOM=10k 07/19 CHASE SAPPHIRE RESERVE=14.1k 09/20 AMEX PLATINUM= NPSL 04/21 AMEX HILTON SURPASS=10k 05/21

OPEN BUSINESS ACCOUNTS/OPEN DATE
CHASE INK CASH=10k 07/18 AMEX MARRIOT BONVOY=10k 02/19 CHASE INK UNLIMITED=10k 09/19 US BANK BUSINESS CASH=29k 10/19 WELLS FARGO BUSINESS PLATINUM=20k 11/19 AMEX LOWES BUSINESS=15k 11/19 AMEX BLUE BUSINESS PLUS=35k 02/20 CHASE INK PREFERRED=50k 07/20 AMEX BUSINESS GOLD=NPSL 09/20 AMEX BUSINESS PLATINUM=NPSL 05/21 CHASE BUSINESS LINE OF CREDIT= 225k 09/21

Anonymous · ‎09-08-2018

1. Yes, you will gain points back when you bring your UTI below 8.9% and keep it there.

2. You shouldn't expect to gain points when the 2 new accounts report to CRA, you should expect more hits due to dropping of AAoA.

3. Your next gains will come from individual inquiries hitting the 1 year mark, then the biggest gain will come from your AoYA (Amex/Discover) hitting the 1 year mark, assuming you don't app again before then and reset AoYA to 0 again.

Anonymous · ‎09-08-2018

Be certain to use any new cards at least once during the first 45 days. Once you have a record of having used the card once, you can go for much longer periods without using them.

Anonymous · ‎09-08-2018

ok so i will use the 2 new cards. let them report a balance once. and then rotate a balance between them. i am new to tracking my scores so it'll be interesting to watch the changes month to month. hopefully i can see in reality what so many describe on these forums.