increased utilization point drop

[Anonymous]

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]

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]

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]

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]

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]

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@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)?

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herewegoagain 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]

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@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!

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[Anonymous]

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]

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]

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.